Everything coming out of Allworx (News - Alert) lately has been positive — it’s partnerships, the growth if its channel, enhancements to its product line, all point to a successful operation. It’s not surprising, then, that PAETEC (News - Alert) Holding Corp. became interested in acquiring Allworx, and has now announced a definitive agreement between the two firms that will make the deal a reality.

 

As a developer of phone systems, Allworx makes sense for PEATEC which offers a suite of IP, voice, data and Internet services, as well as enterprise communications management software, network security solutions, CPE, and managed services. Now, with the Allworx deal, it can offer a truly complete solution, from system to service, making the transition to IP-based communications simple for SMBs.

 

The announcement makes even more sense in light of PAETEC’s recent announcement it is acquiring McLeodUSA, which is expected to enhance PAETEC’s SMB offerings. The Allworx product line is ideally suited to even further enhance PAETEC’s ability to serve this space. 

 

“This transaction allows PAETEC to serve one of the growing segments of our business by bringing into our company an innovative technology and product development firm,” said Arunas A. Chesonis, chairman and CEO of PAETEC.

 

Indeed, the SMB space has been a growing focus for many service providers and systems vendors alike, so seeing PAETEC tackle it comes as no surprise. However, PAETEC has shown the savvy to acquire a hardware vendor that serves that particular market, rather than try to morph other enterprise solutions into an SMB offering. 

 

“Allworx fits into our strategic vision by providing small and medium-sized businesses with the opportunity to transition from aging PBX (News - Alert) and key phone systems to the advanced features and benefits of VoIP technology,” said Jack Baron, CMO of PAETEC.

 

In addition to providing PAETEC a targeted solution for its SMB customers, it also brings nearly a decade of dedication to providing quality service to customers to Allworx customers. Those customers will now have a single source for their hardware and service needs — including the proven experience in the SMB space Allworx has honed, also in nearly a decade.

 

Interestingly, both companies were started in 1998 — which may not mean anything. On the other hand, it does mean they both have experience the same trends and industry movements, which should create certain synergies between them.

 

According to Allworx, becoming a PEATEC subsidiary will provide a tremendous boost to its vision of transitioning the SMB market to VoIP solutions, and will enable Allworx to provide a seamless migration path to VoIP for even more customers — but now with the support of a forward-thinking communications solutions provider

 

“Being a part of PAETEC provides immediate benefits to our employees, our customers and our network of Authorized Resellers,” said George E. Daddis Jr., president and CEO, Allworx Corp. “This will give us the opportunity to offer more small and medium-sized businesses a seamless transition to VoIP, with the support and powerful brand of one of the nation’s leading communications solutions providers behind us.”

 

PAETEC will pay $25 million to acquire Allworx, following which, PAETEC will have added a subsidiary with expertise in manufacturing, distribution, and software and digital hardware engineering services, providing a perfect balance to PAETEC’s service menu.