MegaPath Corporation is selling its managed services business division to GTT Communications, for $144.8 million in cash and $7.5 million in GTT common stock
The parties expect to close on April 1, 2015, after obtaining regulatory approvals.
MegaPath’s Managed Services division provides private networking, access services and managed security services to over 500 large enterprise clients.
Going forward, the companny will devote its resources to revenue growth and product expansion for its unified communications and cloud services portfolio. And, the managed services agreement will also enable MegaPath to leverage GTT’s global footprint for network connectivity.
“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 Craig Young, executive chairman at 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.