Fast-Growing IP Telephone and Internet Services Company Continues Rapid Expansion Plan

PHOENIX & DENVER--(BUSINESS WIRE)--Telesphere® (www.telesphere.com), a nationwide business phone and Internet services provider, announced it has entered into an agreement to acquire the VoIP services business of Unity Business Networks, a fast growing provider of IP services with market presence in Denver, Portland, Ore. and Minneapolis/St. Paul, Minn. Financial terms of the agreement were not disclosed.

The transaction requires regulatory approvals and is expected to close in the third or fourth quarter of this year. Following the transaction, end-user customer services for both companies will be marketed under the Telesphere brand name.

Last month, Telesphere announced it had closed more than $15 million in additional funding to be used in accelerating the company’s rapid expansion plans through both organic- and acquisition-based growth. The round of funding featured several premier telecommunications investors including: Rally Capital, Hawkeye Investments and the Greenspun Corporation.

“Today’s news is yet another exciting chapter in the Telesphere story as we bring Unity Business Networks and its high-quality team and exceptional customer base into the Telesphere family,” said Telesphere Chief Executive Officer Clark Peterson. “We intend to be the major player in hosted IP services in the United States and we will continue to act decisively to achieve this goal. With this acquisition we will nearly double the size of our company, significantly expand our market presence, and add the best back-office system in our industry to the company. And for the Telesphere/Unity team and our customers, the best is yet to come.”

“I am proud of everything the Unity team has accomplished over the past few years,” said Unity Chief Executive Officer Bob Paulsen. “Unity brings exceptional experience and focus on a reliable network, quality systems, customer service as well as a premier back-office system. Our strengths complement Telesphere and together will allow us to become the leading provider for hosted telecommunication solutions.”

Unity Business Networks was founded in 2003 and has been a notable success story in Denver’s business community.

• The business communications company was Colorado’s seventh fastest-growing private company in 2007 and is the state’s top retail provider of IP PBX services and a Top 10 Internet services provider.
• In 2008 and 2009, Unity’s CEO was named one of Ernst and Young’s Global Entrepreneur of the Year semi-finalists and a Colorado Technology Association Apex Award Finalist.
• Unity has demonstrated consistent revenue and customer growth over the last six years.

“This acquisition roughly doubles the marketplace for Telesphere,” said Jeff Kagan, a telecom industry analyst based in Atlanta. “Telesphere is becoming a fast-growing IP phone and Internet service provider aimed at the Hosted VoIP and Managed IP PBX marketplace for business customers.”

To schedule an interview with Telesphere CEO Clark Peterson or Unity CEO Bob Paulsen please call Aaron Walker at 801-803-1068 or email awalker@summitslc.com.

About Telesphere

Telesphere is a nationwide business phone and Internet services provider that delivers an innovative package of IP telephone services and Internet access to businesses throughout the United States. Telesphere’s services allow businesses to enjoy all of the latest voice and data features of large businesses without the costly investment of on-premises equipment. Telesphere is a driving force in the convergence of office PBX phone service, cellular phones, PCs and Unified Communications features. Telesphere fully manages its customers’ services over a private IP facilities-based network.