EarthLink completes CenterBeam acquisition
EarthLink (Nasdaq: ELNK) has wrapped up its $22 million acquisition of CenterBeam, a move that immediately enhances its cloud-based IT service capabilities with a set of remote managed IT services and an IT support center staffed with 140 specialists.
As EarthLink looks to become more of an IT services-centric provider for its customers, it will be able to leverage these assets to answer technology questions and resolve issues for the mid-sized multisite businesses that EarthLink is trying to attract.
"With the close of this strategic acquisition, we intend to add CenterBeam's IT services and help desk competencies to quickly expand our IT services portfolio and extend these services nationwide in conjunction with our cloud, security and network connectivity solutions," said EarthLink Chairman and CEO Rolla P. Huff, in a release.
Later this quarter, EarthLink will begin offering CenterBeam's 365+ Enterprise Cloud service, Unified End Point Management and Help Desk solutions through its distribution channels.
EarthLink's ongoing move to become an IT consultant to its business customers will enable the CLEC to further differentiate itself from both traditional CLECs and cable operators such as XO and Comcast Business (Nasdaq: CMCSA), two players that have been expanding their IP-based service sets to also appeal to larger businesses.
IT services have become a growing piece of EarthLink's overall retail growth business. During the first quarter, this segment which also include MPLS and hosted VoIP, reached an approximate $148 million annualized revenue run rate.
- see the release
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