MegaPath Sells Off Managed Services Business to Cloud Networking Provider GTT

By Laura Stotler

In the second major business announcement of the year, MegaPath has agreed to sell its Managed Services business to cloud networking provider GTT Communications. GTT will shell out $144.8 million in cash as well as $7.5 million in common stock in the acquisition, which covers MegaPath’s private WAN, Internet access services and managed security and other services.

The buyout announcement follows the January news that MegaPath had sold its Network Services business unit to Global Capacity, a provider of data networking connectivity solutions. That deal created a $300 million combined company reaching more than 14 million businesses throughout the U.S.

“In 2014, MegaPath made the strategic decision to consolidate our business and place increased focus on high-growth, strategic opportunities,” 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.”

The company plans to expand its Internet connectivity offerings and will also continue to offer cloud-based services to customers and partners. MegaPath will also maintain service provider wholesale relationships with companies like GTT as well as provide private networking and managed security services.

GTT will benefit from MegaPath’s more than 500 large multinational managed services clients and a business that generated around $124 million in recurring revenue last year. The cloud provider has been building out its own business and acquired communications and data services provider UNSi last October. The company added high capacity Ethernet and MPLS WAN solutions as well as a range of managed services to GTT’s growing portfolio and also brought the firm more than 2,000 U.S. clients.

"This acquisition furthers our growth strategy to expand our cloud networking services by adding a comprehensive portfolio of managed services,” said Rick Calder, president and CEO of GTT, of the MegaPath acquisition. “We are adding significant expertise to deliver managed security services with multi-layered solutions to protect large enterprises from cyber threats.”  

Edited by Maurice Nagle

MSPToday Contributing Editor

Related Articles

Home Automation Will Increase in Popularity in the Next Decade

By: Special Guest    6/25/2019

Smart homes and home automation have been the subject of science fiction stories for decades.

Read More

Swift Sensors IoT Solution Set to Protect Rare and Valuable Museum Exhibits

By: Arti Loftus    5/29/2019

A lot of museums around the world are located in old buildings which may be subject to drafts, warm or cold areas of uneven heating, many of the build…

Read More

Safer, Smarter Public Venues: Powering Dr. Phillips Center

By: Shrey Fadia    5/29/2019

Siemens recently demonstrated its role as a technology partner for the Dr. Phillips Center on Orlando, where Siemens helps with safety issues and othe…

Read More

Jacksonville Jaguars Bring Game Day to a New Level with Siemens

By: Shrey Fadia    5/29/2019

Technology today is increasingly embedded into public venues, as part of Smart City projects, Smart Transportation and Smart Factory projects, and now…

Read More

Resilient Cites: Orlando's Most Exciting Ride

By: Shrey Fadia    5/28/2019

Siemens featured Orlando in their their flagship U.S. technology and innovation conference held recently in Orlando (Spotlight on Innovation 2019).

Read More