Newly released information shows that the Quincy-based telecommunications firm 382 Communications is considering an acquisition that would set the company up for future growth. According to company leaders, the firm is planning to purchase Iserv Co., a firm based in Grand Rapids, Michigan. The move will allow the East-Coast firm to access richer assets in the Midwestern area.
The director of 382 says that other entities have entered the bidding process for the company, but it appears that Iserv's administrators are most excited about the plan presented by 382. Not only does the communications firm intend to retain all of the Michigan-based employees, but it also intends to expand the telecommunications offerings provided by Iserv.
Additionally, Iserv will receive the benefit of having access to the Boston area's high-tech business hub, which will permit the Michigan company to build prestige and efficiency.
Administrators say that both of the firms will expand along with the merger; 382 currently employs about 15 people, while Iserv has 40 staff members. Some of the Quincy employees will likely be transferred to the Midwest location.
The purchase had been confirmed at the end of June this year, and the announcement of the sale was made in July. Further plans for expansion are still under consideration at both companies.
There are many legal implications to consider when undertaking a merger or acquisition, particularly as a small firm like 382. Companies that intend to acquire other firms should consult a qualified attorney to discuss the tax consequences that may result from acquiring another entity. In addition, the merger could have an impact on the companies' respective communities, as states may choose to limit the acquisition if an undue effect is anticipated.
Furthermore, specific companies involved in critical infrastructure ventures could face more stringent scrutiny when acquiring or merging with another company. State approval is generally required when larger businesses choose to pool their resources, especially vital organizations like hospitals and communications groups.
Source: The Patriot Ledger, "Quincy telecom acquires Michigan company," Adam Vaccaro, Sept. 5, 2012
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