Pleasanton, Calif. – February 19, 2015 – MegaPath Corporation, one of the leading providers of voice, data, security and cloud services in North America, today announces that the company is selling its managed services business division to GTT Communications, Inc. (NYSE: GTT), a leading global cloud networking provider to multinational clients. The parties expect to close on April 1, 2015, after obtaining regulatory approvals.
GTT will pay $144.8 million in cash and $7.5 million in GTT common stock to acquire MegaPath’s Managed Services division, which provides private networking, access services, and managed security services to over 500 large enterprise clients. With increasing demand for its unified communications and cloud services, MegaPath will devote its resources to revenue growth and product expansion by increasing investment in innovative value-added services that satisfy the current and future needs of business customers. This agreement will also enable MegaPath to leverage GTT’s global footprint to deliver ubiquitous network connectivity services worldwide and offer more high-capacity services at competitive price points.
“In 2014, MegaPath made the strategic decision to consolidate our business and place increased focus on high-growth, strategic opportunities. This agreement with GTT is the second of two strategic initiatives that further our strategy of becoming a leading global cloud communications provider,” said D. Craig Young, Executive Chairman, MegaPath. “This agreement will provide us with additional resources to drive further innovation in our unified communications and cloud offerings and leverage our existing leadership on the communications and security front to build a dominant cloud business. At the same time, it will enable us to expand our Internet connectivity offerings to meet the increasing demand for high-capacity access services to businesses worldwide.”
MegaPath will continue to offer its cloud-based services to customers and partners, as well as maintain wholesale relationships with service providers, including GTT, to continue offering Internet access, private networking and managed security services. This partnership with GTT will also enable MegaPath to expand its Internet service offerings to include international services, as well as more high-performance connectivity services.