MegaPath has completed the sale of its managed services business division to GTT Communications.
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 said that it 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 at 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, it said.