Best Buy Acquires Speakeasy ISP

Electronics retailer Best Buy has taken the unusual step of acquiring Speakeasy, one of the largest independent Internet service providers in the United States. The company is increasingly focusing on selling services to small businesses, which is where Speakeasy excels.

Speakeasy services, which include DSL broadband and voice over IP telephone offerings, will be sold through the retailer's Best Buy for Business division, which has locations in 281 physical stores across the country. The company intends to become a one-stop shop for small business technology needs.

"By joining forces with Speakeasy, a company with a true passion for helping entrepreneurs run their businesses, we are making technology more accessible to small businesses by creating a single source for their IT needs," said Darren Jackson, Best Buy CFO. "For small businesses and tech-savvy professionals, Speakeasy offers innovative IT and communications services, backed by outstanding network reliability and terrific customer support."

Speakeasy counted 40,000 customers in 2006, and has 300 employees. The company is headquartered in Seattle, but sells its services to consumers throughout the United States. Bruce Chatterley, Speakeasy CEO, will remain in his role and report to David Hemler, who oversees Best Buy for Business.

While the entire Speakeasy executive team will remain following the Best Buy acquisition, the companies did not say what impact, if any, the buyout will have on employees.

The value of the deal is approximately $97 million, but the companies did not say whether that was in cash or stock. The acquisition is expected to close n the first quarter of Best Buy's 2008 fiscal year, and will have no impact on the company's revenues.