Global Capacity Purchases MegaPath’s Network Services Business
Chicago-based connectivity-as-a-service (CaaS) company Global Capacity has finalized the acquisition of MegaPath’s network services business. Terms of the agreement were not disclosed.
Global Capacity said the addition of MegaPath’s network services business expands and enhances its One Marketplace platform, which streamlines and simplifies the process of designing, pricing, procuring and delivering data connectivity solutions.
“The disruptive nature of the One Marketplace platform has become increasingly self-evident in the market, and the ability to accelerate the scale and competitiveness of our platform through the addition of these assets is very exciting,” Global Capacity President Jack Lodge said in a prepared statement. “We will continue our drive to fundamentally change the landscape of the global data connectivity market, and this acquisition accelerates the pace at which we can continue to disrupt the status quo.”
Global Capacity also noted its addition of MegaPath’s network services business creates a $300 million company that is “uniquely positioned to change how businesses and service providers buy data network connectivity.”
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MegaPath, meanwhile, said it plans to use the money from the sale of its network services unit to expand its cloud and managed services businesses.
“Both MegaPath’s cloud and managed services businesses are growing rapidly and the company is seeing consistent increases in customer demand,” MegaPath CEO D. Craig Young told Talkin’ Cloud. “Moving forward, MegaPath will be placing even greater emphasis in these areas, with plans to invest in product expansion, marketing, sales and system resources, and possible acquisitions.”
The data, voice, security and hosted IT services provider noted the transaction provides Global Capacity with over 400 new wholesale customers as well.
“Global Capacity is excited to serve this new large customer base,” Lodge said in a prepared statement. “This agreement provides MegaPath customers with a dedicated vendor solely focused on ensuring they have the best access network performance available and ensures that they are on the cutting edge of network connectivity innovation.”
Pivotal Group, the private equity firm that owns and operates Global Capacity, previously announced plans to acquire MegaPath’s network services business and merge the MegaPath assets with Global Capacity last September.
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