TORONTO – MTS Allstream Inc. today announced that it has acquired Delphi Solutions Corp. for approximately $15 million cash.
For Allstream, the national division of MTS, which also provides back end telephony solutions to certain Canadian cable companies, the acquisition is an important step in positioning the company to take advantage of the migration of customer networks to converged Internet Protocol technologies, says the press release.
"With this acquisition, Allstream strengthens its competitive position associated with the sale, installation and maintenance of customer premise-based telecommunications equipment, either customer or third-party owned; this supports our converged services portfolio and enhances our ability to effectively sell new IP-based solutions," said Bill Fraser, CEO of MTS. "In addition, we gain new opportunities to drive incremental business by leveraging both companies’ strong customer relationships and technical capabilities."
Delphi provides telecommunications products and services to more than 20,000 business and government organizations across Canada. Delphi’s customer base primarily consists of mid-sized companies, “making it an ideal complement to Allstream’s focus on the large enterprise segment and strengthening the Company’s position in the mid-market space. As such, Delphi also provides Allstream with an excellent opportunity to enhance its existing sales channels,” adds the release.
With 180 employees, Delphi has a strong presence in most major Canadian cities. The senior management of Delphi will remain with the organization.
