Nitel to Purchase Hypercore Networks

Nitel, a next-generation technology service provider, announced it will purchase Garland, Texas-based Hypercore Networks. The move represents a step in Nitel’s inorganic growth strategy put in place late last year after global private equity firm Cinven invested in Nitel. Operating under the Nitel brand, the combined organization will improve Nitel’s overall competitive position.

Both organizations are established Network as a Service (NaaS) providers with synergistic offerings in-network, SD-WAN, and security. The companies also share common go-to-market strategies that focus on the channel and wholesale.

The acquisition strengthens Nitel’s footprint in the United States and accelerates international growth. In addition, the move represents an opportunity to add complementary capabilities to Nitel, including Hypercore’s voice solutions and additional SD-WAN platforms.

“As we indicated late last year when Cinven invested in Nitel, we would be actively pursuing inorganic growth opportunities,” said Margi Shaw, CEO of Nitel. “Hypercore is the perfect match for us. While our businesses are similar, we complement each other in a few key areas that create additional value for customers and partners. We are extremely excited about the opportunities this acquisition will bring.”

Hypercore co-founder Josh Dickinson added, “This sends a strong message to the marketplace as we stake our claim to a leadership position in the NaaS arena. The opportunities for our staff, our customers and our partners are very exciting, and we are eager to be a key part of Nitel’s success moving forward.”

The transaction is pending regulatory approval and is expected to finalize in the coming weeks.

Terms of the agreement are not being disclosed.