MegaPath, a portfolio company of Platinum Equity, has sold its managed services business unit to GTT Communications. The value of the transaction is $152.3 million.
PLEASANTON, Calif., April 1, 2015 /PRNewswire/ — MegaPath, a leading provider of voice, data, security and cloud services in North America, today announced the completion of the sale of its Managed Services business division to GTT Communications, Inc. (NYSE: GTT), a leading global cloud networking provider to multinational clients.
Under this agreement, 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 more than 500 large enterprise clients. MegaPath will dedicate the resources from the sale to driving revenue growth and investing more heavily in expanding its core cloud services, including Hosted Voice and Unified Communications.
“This deal further positions MegaPath to focus on its strategic vision of becoming a leading global cloud services provider,” said D. Craig Young, Executive Chairman, MegaPath. “The company is in an exciting position to place an even greater emphasis on investments in our Cloud and Unified Communications service offerings to drive growth in these expanding markets.”
MegaPath will continue to offer its cloud-based services to customers and partners and continue to maintain wholesale relationships with service providers, including GTT, to continue offering Internet access, private networking and managed security services to its customers and partners.
MegaPath 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.