ATLANTA, GA — February 2, 2016 — EarthLink (EarthLink Holdings Corp., NASDAQ:ELNK), a leading network services provider dedicated to delivering great customer experiences, today announced that it has sold select assets associated with its Information Technology (IT) service offering to Synoptek, a worldwide IT managed services and support organization. The transaction aligns EarthLink’s IT services customers with a trusted partner that is best positioned to serve them and it advances EarthLink’s strategy to focus on its business units with greater scale. The transaction provides Synoptek with additional scale and geographic diversity to further enhance the company’s position as a leading IT services provider.
“We are excited to announce this transaction with a company that has a proven track record of success in the IT services space,” said Joe Eazor, Chief Executive Officer and President of EarthLink. “This transaction also strengthens our balance sheet, simplifies our operations and provides us more flexibility to invest in new capabilities and services to drive growth in our core business.”
The transaction impacts approximately 1,700 customers that are serviced through data centers and office locations in the continental US and Canada. EarthLink will continue its core business of providing a differentiated suite of both managed and network services to business customers, including enhanced core data and voice services and carrier grade transport solutions.
“We are enthusiastic about acquiring the EarthLink IT services assets,” said Tim Britt, CEO for Synoptek. “This acquisition helps us continue our mission to become the best independent IT managed services company in the market and supplements our ability to provide IT leadership to our customers. EarthLink’s product management and IT services offerings we’re acquiring will streamline and simplify IT for our customers. This new coverage enables us to offer high caliber enterprise IT management services, IT outsourcing, and cloud services throughout the US and Europe. This acquisition expands our presence in the eastern US and complements our national data center infrastructure. When EarthLink acquired CenterBeam, one of the first IT managed services businesses in the US, it set the pace for our industry. EarthLink has a rich heritage in providing unparalleled service to its customers. We look forward to bringing that history and heritage into the Synoptek fold.”
Proceeds from the transaction are approximately $29 million, subject to post-closing contingencies. The divested IT services assets generate approximately $37 million in annualized run-rate revenue.
Bank Street served as EarthLink’s exclusive financial advisor and Troutman Sanders as legal advisor in connection with this transaction.
EarthLink (EarthLink Holdings Corp., NASDAQ:ELNK) is a leading network services provider dedicated to delivering great customer experiences in a cloud connected world. We help thousands of multi-location businesses securely establish critical connections in the cloud. Our solutions for cloud and hybrid networking, security and compliance, and unified communications provide the cost-effective performance and agility to serve customers anytime, anywhere, via any channel, or any device. We operate a nationwide network spanning 29,000+ fiber route miles, with 90 metro fiber rings and secure data centers that provide ubiquitous data and voice IP coverage. To learn why thousands of specialty retailers, restaurants, franchisors, financial institutions, healthcare providers, professional service firms, local governments, residential consumers and other carriers choose to connect with us, visit us at www.earthlink.com,@earthlink, on LinkedIn and Google+.
Synoptek offers IT consulting, managed services, cloud services, and on-premise IT management as well as 24×7 end user support. With over 215 employees and more than 400 active customers in the United States and abroad, Synoptek provides comprehensive information technology management services and support. Synoptek leverages ITIL service management processes, customer-focused IT architecture, and operational excellence to deliver uninterrupted services demanded by today’s market. Over the past four years, Synoptek has been consistently recognized for thought leadership and growth as confirmed by industry awards and recognition including a #15 ranking in MSP Mentor’s “World’s Top Managed Services Providers, 2015, and a #2 MSP ranking in the state of California.” www.synoptek.com