Tuesday, February 8, 2011

PAETEC to Acquire XETA Technologies

PAETEC agreed to acquire XETA Technologies, which sells enterprise communications gear, for $5.50 per share in cash valued at approximately $61 million. XETA is among the largest full-service, providers of advanced communications solutions with 32 locations and redundant 24/7 customer contact and data network operating centers. At the time of the Avaya and Nortel merger, XETA was the only national provider with the highest accreditations from both companies, and will expand on those relationships with PAETEC's existing platinum partnership with Avaya.

XETA will become part of PAETEC's robust Managed Services portfolio, consisting of products such as hosted services, service lifecycle management software and Allworx IP-PBXs.

"This transaction highlights our strategy to increase our capabilities to service enterprise CIOs beyond traditional telecom products with advanced managed services and cloud computing solutions," said Arunas A. Chesonis, chairman and CEO of PAETEC.