August 28, 2017 / 12:16 PM / a year ago

BRIEF-Fusion to acquire Birch Communications' cloud, business services business

Aug 28 (Reuters) - Fusion Telecommunications International Inc:

* Fusion announces definitive agreement to acquire birch communications’ cloud and business services business

* Fusion telecommunications - ‍all-stock deal in which birch shareholders to get approximately 73 million common shares of fusion valued at $3.85 per share​

* Fusion telecommunications international inc - ‍fusion will assume birch’s existing debt of approximately $458 million​

* Fusion telecommunications international - deal is expected to be significantly accretive to fusion’s adjusted ebitda immediately upon closing

* Says ‍fusion and Birch shareholders will each appoint four directors to combined company’s board​

* Fusion Telecommunications - ‍birch’s existing debt of approximately $458 million is expected to be refinanced along with fusion’s existing debt​

* Fusion Telecommunications International Inc- deal approved by boards of directors of both companies

* Fusion Telecommunications International Inc - ‍matthew Rosen, chief executive officer of fusion, will serve as ceo of combined company

* Fusion Telecommunications International - ‍ninth director of combined co to be nominated by birch shareholders with fusion’s prior approval

* Fusion Telecommunications International Inc - ‍acquisition will not include birch’s legacy consumer and single-line business customers​

* Fusion Telecommunications International Inc - ‍matthew Rosen will assume role of chairman of board upon close of transaction​

* Fusion telecommunications international-deal contemplates over $20 million of cost synergies which are expected to be achieved within 12 months of closing

* Fusion telecommunications-‍combined co expects that it will continue to be listed on nasdaq capital market and trade under fusion name and symbol​ - FSNN

* Fusion telecommunications-‍all members of fusion’s board have signed a support agreement to vote their aggregate 10.5% interest in favor of transaction​

* Fusion telecommunications international-deal to result in 25% pro forma ownership by co’s shareholders & 75% pro forma ownership by birch shareholders Source text for Eikon: Further company coverage:

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