NewSpring Capital, a group of private equity funds, recently announced that its control buyout strategy, NewSpring Holdings, has completed the first step in its strategy for long-term growth by acquiring telecom service provider X5 Solutions.

X5 offers voice and data services, SIP trunking, conferencing, and unified communications products and other similar services to a wide range of clients. NewSpring said that part of its plan for the future is to expand its operating capacity even further and expand its reach into more cities throughout the U.S.

Skip Maner, a general partner of NewSpring Holdings, spoke to that point in his comment for the recent announcement.

“With our acquisition of X5 Solutions, we see a unique opportunity to build on X5’s reputation for excellence by significantly expanding the company’s operational capacities and broadening the market for its products and services,” Maner said.

The announcement suggests that NewSpring will be replacing some executive positions at X5. It specifically mentions Greg Forrest and Rick Hirsh as two individuals who have many years of experience as executives who have served as founders and CEOs of various B2B technology companies. Forrest commented that part of the long-term strategy of NewSpring was to bring X5 to larger cities where it could increase its geographic footprint. In these new locations, it appears that X5 will continue to offer many of the same communications and cloud-based services that have long been a part of its portfolio.

However, in addition to those time-tested products, several new products could find their way to X5 clients. With a significant push, NewSpring indicated, it could offer some new UC for retail, TDM to SIP migration tech, and government-focused products by the end of 2015. The market focus is similar to what X5 has always placed its attention, and therefore it is unlikely that the company will find a complete reversal of fortunes in the months to come. X5 exclaimed that its company was being left to competent professionals who will have the knowledge necessary to expand the company and reach into new territory.