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.
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