VoIP services provider GLOBALINX Enterprises plans to buy fellow carrier TMC Communications, whose specialties lie more in TDM products, for an undisclosed price.
The two companies announced the deal on July 6.
GLOBALINX has wanted to do M&A “for some time,” said Mike Machonkin, GLOBALINX’s vice president of sales and marketing, and the opportunity with TMC was the first “that seemed to be a good fit.”
“The biggest thing is that they have a pretty well-defined agent channel – we have a very small agent channel, so this gives us a robust distribution channel that we didn’t have,” Machonkin said.
But GLOBALINX, which sells to residential subscribers as well as small businesses, also brings assets to TMC. For example, TMC tends to focus on TDM-based services, such as local PRI and 800-number setup. TMC does offer some IP products but GLOBALINX is all-IP, which means channel partners and customers will have access to more SIP trunking options as well as products such as hosted PBX.
“We bring VoIP to their piece of the puzzle,” said Machonkin.
The deal also beefs up both companies’ wholesale offerings.
GLOBALINX did not disclose financial details; both GLOBALINX and TMC are privately held. GLOBALINX said customers will see no disruptions and, TMC employees will remain on board, although under the GLOBALINX name. GLOBALINX and TMC aim to close the transaction in 60-90 days. When that happens, GLOBALINX will become an IXC in 50 states and a CLEC in about six, Machonkin said.
GLOBALINX is owned by 5LINX Enterprises, which ranked No. 11 in the 2008 Inc. 500 list of top telecom firms. TMC was founded by John Marsch in 1997; Marsch died of cancer in 2006.
