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MegaPath Completes Sale of Wholesale Business to Global Capacity

Company Increases Focus and Resources on Commercial Voice, Managed Network and
Security Services

Pleasanton, Calif. – January 6, 2015MegaPath, one of the leading providers of managed voice, data, security and cloud services in North America, today announced the completion of the sale of its Wholesale business and national colocation aggregation network to Global Capacity, a privately-held company owned by Pivotal Group. Through this agreement, Global Capacity will gain more than 400 new wholesale customers and over 20,000 small business Dedicated Access customers, while MegaPath will receive cash to reduce its debt and provide investment into its growing Managed Services and Cloud businesses.

“This is an exciting time for MegaPath as we focus on driving growth and expanding our core value-added Voice, Data, Security and Cloud services,” said D. Craig Young, CEO and Chairman, MegaPath. “As we continue to dedicate resources and focus on high-growth areas, MegaPath will ensure that its customers and partners receive industry-leading service capabilities, performance and support.”

Customers rely on MegaPath’s Voice over IP (VoIP), Cloud and Managed services offerings to securely and efficiently communicate with their customers, partners and colleagues across the United States. MegaPath will continue to deliver its expansive portfolio of broadband communications services and support, as well as retain its Voice, Managed Security, Private Networking, and Cloud services portfolio. This transaction will enable MegaPath to focus and invest more in these core value-added services. In addition, MegaPath will continue to own and operate its nationwide MPLS-enabled IP network that’s optimized for business-critical applications like Voice and Security. This high-performance telecommunications network enables MegaPath to prioritize real-time traffic, thereby guaranteeing Quality of Service (QoS) in a manner not possible from many providers.

With the close of the transaction, Global Capacity will take ownership of MegaPath’s wholesale business and national colocation aggregation network. Approximately 300 of MegaPath’s 1,000 employees will be joining Global Capacity in the same or similar capacity they had at MegaPath, while MegaPath will retain all of its remaining employees to continue supporting its VoIP and Managed Services commercial businesses. Additionally, as part of this transaction, Global Capacity will be acquiring a number of MegaPath’s small business Dedicated Access customers. For these acquired customers, the services, pricing, and terms and conditions of service will not change as a result of this transaction. Customers included in this transaction were notified by MegaPath in December and were sent a customer communication from Global Capacity on January 6, 2015, with updated contact information. MegaPath and Global Capacity are working closely together to ensure a smooth transition.



About MegaPath
MegaPath is a leading business communications and network provider that helps businesses fully leverage the cloud. MegaPath’s award-winning service portfolio includes Voice, Unified Communications, SD-WAN, WiFi, and Internet services, backed by dedicated project management and 100% US-based technical support. MegaPath is uniquely positioned to deliver custom managed solutions to businesses that desire a broad range of high-value services from a single nationwide provider. With over twenty years of expertise, MegaPath empowers businesses of all sizes to simplify operations, improve communications, increase productivity, and lower costs.

To learn more about MegaPath’s leading service offerings, please visit

MegaPath Media Contact:
Tony Welz
Welz & Weisel Communications

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