November 9, 2010 – Cbeyond Inc., a small-business IT and communications provider, announced plans to expand its cloud computing offerings by paying $40 million for two U.S. firms.
In separate transactions, Cbeyond, based in Atlanta, stated it would purchase MaximumASP, which provides cloud services like virtual and dedicated server management, and Aretta Communications, a company that provides private branch exchange and session Internet protocol in the cloud. Both companies are privately held and work with small-to-midsized businesses in the U.S.
Combined, MaximumASP and Aretta have an expected combined revenue in 2010 of $12 million, according to a Cbeyond news release. Approximately $33 million of the buyout cash was paid at closing, with up to 17.5 percent of the combined purchase price to be paid at the completion of certain benchmarks.
Jim Geiger, chief executive officer at Cbeyond, said in a news release that the acquisitions would move his company into a market where “small businesses will be increasingly outsourcing their IT hardware and services to the cloud.”
Founded in 1991, Cbeyond provides IT and communications services to more than 55,000 small businesses throughout the U.S.
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