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 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.
MegaPath Media Contact:
Welz & Weisel Communications