USConnect acquisitions continue with the news that the rural consolidator has closed its investment in CMS IP Technologies, a managed service provider that serves the east Texas and western Louisiana areas. Traditional smaller telecom carriers have taken an interest in acquiring IT and managed services firms to gain exposure to the fast growing managed and cloud services trend.
“USConnect was started as a collaborative effort in recognition of the growing need for rural and community-based communications providers to diversify their service offerings in the face of declining traditional telephone and regulatory revenues. Adding CMS is a critical step in that plan,” Deborah Rand, the CEO of USConnect, said in a press release. “The expertise and experience of the CMS team will greatly enhance our ability to provide advanced and next generation IT services including network management, video surveillance, security, and communications solutions.”
CMS IP Technologies was founded in 1982 by Derek Bell, who will remain as President and General Manager. Terms were not disclosed.
USConnect made a number of acquisitions during the early part of the decade. It was founded in 2013 with investment from five rural phone companies. They include Golden West Telecommunications (Wall, SD); Horry Telephone Cooperative (Conway, SC); Farmers Telephone Cooperative (Kingstree, SC); Brazoria Telephone Company (Brazoria, TX) and Dickey Rural Networks (Ellendale, ND).
Early in 2014, USConnect acquired The Livingston Telephone Company of Livingston, TX and, soon after, acquired six more rural telcos. They are the Rye Telephone Company (Colorado City, CO); South Park LLC of Hartsel (CO); Dalton Telephone Company (Dalton, NB); Elsie Communications (Elsie, NB); S&A Telephone Company (Allen, KS) and Waverly Hall Telephone LLC (Waverly Hall, GA).