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Macondo Acquires Division of Windstream’s $300M ISG Business Unit

Wharton, NJ – 2016-01-29 — Windstream Corporation (NASDAQ: WIN) announced this week the sale of a division of the telecom giant’s $300M ISG business unit to an ownership group comprised of five former senior executives of the firm. The resulting spinoff – Macondo Networks – will continue to operate at its Wharton, NJ headquarters and warehouse/staging facilities. An additional regional sales office has been established in northern California with 3 other locations identified for expansion this calendar year. Jennifer Frey, longtime Vice President overseeing Windstream’s Reseller Division will serve as the renamed entity’s CEO, joined by veteran senior leaders Tim Keester, John Frey and the founders of Quagga (acquired by PAETEC in 2010), Scott Knorp and Ken Apperson.

In addition to its wholesale asset recovery division that has operated uninterrupted through 4 acquisitions over the span of 17 years, Macondo is focused on the burgeoning $15B UCaaS market (courtesy of Gartner) forecasted to grow at an annual rate of 21% through 2020. “Market research tells us clearly that the mid market and the low end of the enterprise space has begun a rapid expansion to UCaaS and hosted contact center. Our relationships are with an exclusive subset of these service providers” said CEO Jennifer Frey. “Macondo’s model as a cloud brokerage is to provide best in breed UCaaS, contact center and video conferencing services and provide simple, aggregated billing for our customers.”

The move to an all hosted sales model marks a departure for the Macondo leadership team who together transformed Quagga from a regional system integrator into the juggernaut national Avaya platinum partner that PAETEC purchased outright in 2010 before being acquired itself two years later by Windstream. “We started Quagga during the infancy of IP Telephony and here we are staring down another paradigm change” said Ken Apperson. “Apparently we have a thing for disruptive technology.”

Macondo goes to market with a host of subscription based services that provide ala carte flexibility never before available in traditional rack and stack solution sets. With powerful, scalable options for any sized business, CFO John Frey commented “The capex model for communication system purchases just doesn’t pencil out against more feature rich cloud alternatives that are easier to implement and support and provide free upgrades into perpetuity.”

Service and order fulfilment for Windstream customers will not be affected by the Macondo buyout. “We’re a trusted supplier to hundreds of clients across the country who have come to depend on a very high level of service” commented COO Tim Keester. “We’ve gone out of our way to make this transition as painless as possible.” Scott Knorp added “It’s refreshing to be nimble again and able to make snap decisions that benefit our customers without having to run everything up the corporate flag pole.”