GTT Communications, Inc. (NYSE: GTT), the leading global cloud
networking provider to multinational clients, announced today a
definitive agreement to acquire MegaPath’s Managed Services business
which provides private wide-area-networking, Internet access services,
managed services and managed security to over 500 large multinational
clients.
Under the terms of the agreement, GTT will pay $144.8 million in cash
and $7.5 million in GTT common stock for the acquisition. In 2014,
MegaPath’s Managed Services business generated recurring revenue of
approximately $124 million and adjusted EBITDA of approximately $20
million. The parties expect to close on April 1, 2015 after obtaining
regulatory approvals.
“This acquisition furthers our growth strategy to expand our cloud
networking services by adding a comprehensive portfolio of managed
services. We are adding significant expertise to deliver managed
security services with multi-layered solutions to protect large
enterprises from cyber threats,” said Rick Calder, GTT President and
CEO. “This transaction accelerates our progress toward achieving our
next financial objective of $400 million in revenue and $100 million in
adjusted EBITDA."
“Today’s agreement provides great benefit to our Managed Services
customers, while furthering MegaPath’s strategy of becoming a leading
global cloud communications provider,” said Craig Young, CEO MegaPath.
“Our Managed Services customers will continue to receive the high-level
of support that enterprise customers require, while benefitting from
GTT’s expertise in delivering high-performance global connectivity and
end-to-end network management services.”
GTT has engaged KeyBanc Capital Markets Inc. and Webster Bank, N.A. to
arrange the debt financing related to the acquisition of MegaPath’s
Managed Services division.
About GTT
GTT operates a global Tier 1 IP network connecting to any location in
the world and with any application in the cloud. Our cloud networking
services provide a better way for multinational clients to embrace the
cloud. Our clients trust us to deliver solutions with simplicity, speed
and agility so they can compete effectively in the global economy. For
more information, visit www.gtt.net.
About MegaPath
MegaPath Corporation is a leading cloud communications company that
empowers businesses to easily and securely communicate between their
headquarters, employees and business partners. The company offers a
comprehensive portfolio of voice, unified communications, hosted IT, and
secure data networking services that increase productivity and customer
satisfaction, while lowering costs. To learn more about MegaPath’s
leading service offerings, please visit www.megapath.com.
Copyright Business Wire 2015