IT and managed communications services company Birch Communications has acquired Cbeyond, an Atlanta-based managed service provider (MSP), for $323 million.

The transaction has been unanimously approved by the boards of directors of both companies.

Birch CEO Vincent M. Oddo said the acquisition will allow it to better serve its customers at every stage of the business lifecycle.

"As of today, our customers are served by a company with strong financial resources and an expanded network that will provide them with access to improved communications, cloud and managed IT services," Oddo told MSPmentor.

Birch said Cbeyond's addition creates a nationwide communications, cloud and managed services provider with approximately $700 million in annual revenue.

Oddo noted the acquisition could help his company expand its IP-based network as well.

"We have had a nearly 100 percent positive response to the announcement," he said. "The long-term implications of the Cbeyond acquisition are that it enhances and expands our IP-based network and significantly adds to our customer base."

Cbeyond, which provides cloud, mobile, network and voice solutions, will no longer be listed for trading on the NASDAQ.

The company's headquarters also will become Birch's third operations center as part of the agreement.

Birch originally announced the acquisition earlier this year, and chief operating officer Chris Aversano said Cbeyond could help his company's customers improve their everyday operations.

"The completion of this transaction means that all of our customers will now benefit from a comprehensive set of communications and managed-service capabilities that enable them to operate their businesses in an efficient and effective manner," he said in a prepared statement.

Share your thoughts about this story in the Comments section below, via Twitter @dkobialka or email me at dan.kobialka@penton.com.