Pleasanton, Calif. – September 8, 2014 – MegaPath Corporation, one of the leading providers of managed voice, data, security and cloud services in North America, today announced that the company has entered into a definitive agreement to sell its Wholesale business and national colocation aggregation network to Pivotal Group Inc., a leading private equity firm. In combination with this sale, Pivotal Group plans to merge these MegaPath assets with its wholly owned portfolio company, Global Capacity, the leading “connectivity as a service” provider. This agreement provides Global Capacity with over 400 new wholesale customers and provides MegaPath with additional financial resources to support the rapid growth of its managed services and cloud businesses.
With increasing demand for its managed services and cloud services, MegaPath will now devote all of its resources to driving growth in those expanding markets -- increasing investments in innovative value-added services that satisfy the current and future needs of SMB and Enterprise customers.
“Today’s deal creates a more focused MegaPath, with increased access to capital to fund our strategic, high-growth, value-added services,” said D. Craig Young, Executive Chairman of MegaPath. “MegaPath now has a greater capability to invest in a product growth strategy to meet the needs of our customers and partners.”
While Global Capacity is taking over the company’s wholesale business and related national colocation aggregation network, MegaPath is maintaining its Voice network, MPLS network and security network, helping ensure that its cloud and managed services customers continue receiving the same performance and quality that they have come to expect. The company’s suite of Managed Services offerings simplify IT management with value-added solution bundles, and customers across the country rely on MegaPath’s Voice over IP (VoIP) solutions to effectively communicate with colleagues, partners and customers over an enterprise-class calling solution. MegaPath further extends the value customers receive with its cloud-based solutions, which include the recently launched Unified Communications offering that enables real-time collaboration for increased productivity.
“As a leader in connectivity as a service solutions, Global Capacity is excited to serve this new large customer base,” said Jack Lodge, President of Global Capacity. “This agreement provides MegaPath customers with a dedicated vendor solely focused on ensuring they have the best access network performance available and ensures that they are on the cutting edge of network connectivity innovation.”
Global Capacity’s One Marketplace eliminates the complexity and inefficiency of the network market by combining an interconnected, aggregated network with a Cloud application that simplifies the procurement of network solutions. One Marketplace streamlines service delivery and ensures the best client experience by providing customers with a single interface through which to design, price and fulfill multi-network, multi-geography requirements, as well as a single SLA, contract and point of contact, and full network visibility and management.
“We are excited to announce the acquisition of these strategic assets from MegaPath,” said F. Francis Najafi, Founder and CEO of Pivotal Group. “This acquisition will help scale the One Marketplace platform to become a disrupting force in the future of network connectivity and is strategic to our vision of establishing Global Capacity as the premier wholesale services provider in the United States.”
After the deal closes, MegaPath will be the largest Global Capacity customer. The transaction is expected to close by the end of December 2014. MegaPath remains a privately held company, and financial terms of the agreement were not disclosed.
Bank Street served as exclusive financial advisor to MegaPath in connection with the transaction.
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 www.megapath.com.
About Global Capacity
Global Capacity is a connectivity service company that improves the efficiency and reduces the cost of buying access networks globally. Through its One Marketplace, the company brings together customers and suppliers in an automated platform that provides ubiquitous access network solutions that deliver on its brand promise – Connectivity Made Simple. Global Capacity delivers its innovative solutions to telecommunication carriers, managed service providers, system integrators, and large enterprise customers globally. Additional information can be found at www.globalcapacity.com or by following Global Capacity on Twitter and LinkedIn.
About Pivotal Group
Pivotal Group is a diversified investment company focused on private equity and real estate, headquartered in Phoenix, AZ. Pivotal Group invests in companies across a diverse range of industries, including telecommunications, technology, media, aerospace, and business and financial services, among others. Pivotal Group focuses on companies that lead in their market segments, show growth potential, and exhibit attractive margins. Their most important investment criterion is an outstanding management team. They seek companies with market values between $50 million and $500 million. Additional information can be found at www.pivotalgroup.com.
MegaPath Media Contact:
Welz & Weisel Communications