Global Capacity agreed to acquire the Network Services Business of MegaPath. The deal covers Megapath's wholesale business and national colocation aggregation network. Financial terms were not disclosed. Pivotal Group, a private equity group, will provide financing.
MegaPath's aggregation network delivers DSL, T1, Bonded T1, high-speed Ethernet, and cable via 4,200 Central Offices (COs) and an extended reach of an additional 25,000 COs across 235 metro markets in the U.S.
Global Capacity has focused on its One Marketplace, which helps businesses buy connectivity by combining interconnected, aggregated network with a Cloud application that automates the procurement of network services. Customers get 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.
MegaPath is maintaining its Voice network, MPLS network and security network. It will focus on services.
“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.”
After the deal closes, MegaPath will be the largest Global Capacity customer.
http://www.megapath.com
- MegaPath was formed through the 2010 merger of Speakeasy, Covad Communications and the original MegaPath.
