TORONTO — Distributel Communications today announced it has acquired independent telecom provider Primus Telecommunications, a Canadian subsidiary of Atlanta-based Fusion Connect, for an undisclosed amount.
“Bringing Primus into the Distributel family will mean more options, increased innovation and better value for Canadians and ultimately a better alternative for our country,” says Matt Stein, CEO of Distributel, in the company’s press release announcing the transaction. “We are thrilled to bring Primus under Canadian ownership and accelerate the pace of growth for both companies.”
Distributel says the acquisition allows the company to enhance its product range with Primus’ offerings which include a substantial cable footprint, an advanced cloud-based business phone system, an extensive portfolio of access services, and Telemarketing Guard, the industry’s leading call-screening technology. Primus will be able to expand its network and product set through Distributel’s capabilities including 1,000 competitive local exchange carrier (CLEC) coverage areas, state-of-the-art SIP trunking, integrated Microsoft Teams unified communications products, and a leading-edge IP-based TV service, says the release.
The combination of the two companies brings extensive benefits to their customers through greater network reach and an expanded portfolio of complementary products and services available from coast to coast, says Distributel.
The two companies also share similar cultures, Stein says, and he is looking forward to bringing the Primus team onboard at Distributel.
“People come first for us,” says Stein. “We have always believed in building strong, inclusive teams and empowering our people to do their best work. We look forward to the strength of our combined team through this acquisition; I can already see that our similar cultures are going to be an incredible fit with one another.”
Stein says Distributel’s acquisition of Primus was made in anticipation of the CRTC’s final ruling on wholesale rates.
“Acquiring Primus from U.S.-based Fusion Connect materially increases our size,” Stein says, “and enables us to provide all Canadians with fair prices and even more valuable services. This will be further supported by the CRTC’s final decision on wholesale rates, which we expect imminently, and where we expect the Commission to uphold its initial 2019 ruling — a fair, balanced pricing decision designed to increase competition, value and innovation for all Canadians.”
While the release did not specify subscriber numbers and neither company makes public those figures, when long distance and internet reseller Primus went through bankruptcy protection in 2016, it was said to have 225,000 subscribers. Distributel is thought to have about 300,000 subscribers,
https://www.cbc.ca/news/business/primus-ccca-sale-1.3413726
The implementation of the final wholesale rates, along with Distributel’s acquisition of Primus, “will allow Distributel to bring affordable, high-quality Internet service to even more Canadians, at a time when it has become absolutely critical to so many parts of their lives, including work, school and family,” says Distributel’s press release.
In a separate press release issued by Fusion Connect, Primus’ former parent company says the sale represents an all-cash, tax-free transaction and was effective on January 15, 2021. No monetary details of the transaction were announced.
