CINCINNATI, OH ( CBTS, the technology solutions division of Cincinnati Bell Inc. (NYSE: CBB), today announced the acquisition of Toronto-based Virtual Blocks, Inc. A division of Commerx Computer Systems Inc., Virtual Blocks is a leading software developer in the area of virtualization.

The acquisition will strengthen CBTS’ leading-edge data center solutions for businesses of all sizes and provide a foundation for continued geographic expansion.

“Joining with Virtual Blocks allows CBTS to extend our successful business model, brand image, and vendor partnerships both inside and outside of the continental United States in order to better serve customers,” said John Burns, president of CBTS. “In 2008, CBTS partnered with Virtual Blocks to launch the CBTS Virtual Data Center service, which has received a great deal of interest from current and prospective customers.”

The CBTS Virtual Data Center is a utility computing service that allows customers to provision and manage virtual servers in a secure cloud computing environment. Some common uses for the Virtual Data Center include cost-effective virtualized disaster recovery solutions; rapidly deployed test/development environments; on-demand server capacity with utility billing; and managed services including Microsoft Exchange and SharePoint hosting.

“We share a commitment with CBTS to developing innovative solutions in the rapidly emerging area of virtualization,” said Stuart Levinsky, founder and president of Virtual Blocks. “We are excited to be part of CBTS’ growth plans and to support their role as a trusted technology adviser.”

Virtual Blocks’ product portfolio includes the Virtual Server Grid (VSG) for service providers and large IT organizations and the Virtual In-a-Box Environment (VIBE) for small to medium-sized business customers. The VSG is installed at CBTS and Bell Canada, and the VIBE is distributed across North America by Arrow and Synnex resellers.

The acquisition of Virtual Blocks closed on Jan. 30, 2009. Terms of the transaction were not disclosed.

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