Fusion is a provider of cloud and business services that offers a broad range of solutions to its enterprise customers.
Through a series of strategic acquisitions, Fusion is building a significant cloud and business services company to expand its differentiated cloud offerings to its enterprise customer base. As part of its push to expand its scale and offering set, Fusion acquired Birch.
Birch was a leading competitive local exchange carrier (CLEC) offering voice and data access to business customers. The CLEC sector has fallen out of favor due to the advent of cable and the disruptive effect of fiber. Despite the challenging market environment, near-term improvements in Birch’s bookings and profitability point to signs of stabilization in the business. By acquiring Birch, Fusion expects to generate synergies that can accelerate the growth of its cloud services via the Birch network, and offset the decline in traditional CLEC business.
The combined Fusion expects to create one of the largest cloud services networks in North America, with over 150,000 business customers, 30 data centers, 31,000 fiber route-miles of network, and metro fiber assets in 11 major markets.
Insight & Approach
Vector’s investment in Fusion is a great example of the synergies between our credit and private equity businesses. Informed by our previous work as a lender to Birch, Vector’s credit team identified the opportunity to lead Fusion’s stalled financing.
Vector Value Add
Vector’s deep understanding of Fusion and the industry enabled the underwriting of the anchor order for the company to close its financing deal.