Birch Communications Inc. is buying technology and communications equipment provider Cbeyond for about $323 million.

Cbeyond announced in November that it was considering its strategic options. Its shares surged on word of the deal.

“This transaction will create a nationwide communications and technology services powerhouse and significantly advances our strategy to drive top-line revenue growth by enhancing the premier communications, cloud and managed services that are available to our business customers,” said Vincent Oddo, CEO of Birch. “The combined company will have a nationwide IP-network with a significant fiber infrastructure, an extensive data center presence in multiple markets, and a relentless focus on providing superior customer service.”

Added James Geiger, founder, chairman of the board and chief executive officer of Cbeyond: “After a thorough six-month strategic review process in which we evaluated a wide range of alternatives in addition to a sale, the Cbeyond board of directors determined that this all-cash transaction with Birch maximizes stockholder value through an attractive premium. We have been strengthening the Cbeyond franchise with our 2.0 transformation; the wider reach with Birch enables the combined companies to increase service levels with a broad array of products to a larger number of customers.”

Birch provides IP-based communications, cloud and managed services to businesses in all 50 states, the District of Columbia, Canada and Puerto Rico. Its services include voice, broadband, Internet access, hosted services, managed services, wireless voice, wireless data and other communications, cloud and managed services.

Cbeyond Inc. stockholders will receive between $9.97 and $10 per share. That translates to an approximately 41 percent premium over the company’s Thursday closing price of $7.07.

Shares of Cbeyond surged $2.77, or 39 percent, to $9.85 in premarket trading Monday about 30 minutes ahead of the market open.

Both Atlanta-based companies’ boards unanimously approved the deal, which is expected to close within six months.

The transaction still needs approval from federal and state regulators and Cbeyond stockholders.