The new MegaPath hits the market today, ready to challenge other CLECs and managed services providers.

Now comprised of MegaPath, Covad and Speakeasy, the so-called next-generated managed services local exchange carrier” said on Wednesday it has closed the merger, announced on June 10, and boasts more than 85,000 business customers and more than 4,500 partners in North America.

The companies are combining Speakeasys small business voice and data services with MegaPaths services for distributed enterprises, and making them available over Covads nationwide broadband network. The new MegaPath is divided into two units: a wholesale department and a direct, business markets group.

We are bringing to market a leading nationwide IP network to deliver a complete line of end-to-end managed services, including voice, data and security,” said D. Craig Young, chairman and CEO of MegaPath, in a prepared statement on Sept. 1. Small, medium and large enterprises will now benefit from a new service provider that is willing to invest in advanced services, while remaining heavily focused on customer service.”

The financial details of the transaction have not been disclosed except that, all told, the new, privately held MegaPath expects to record more than $500 million in annual revenue. Best Buy, which bought Speakeasy in 2007, will continue as a minority investor. Young, former MegaPath CEO, now serves as chairman and CEO; Pat Bennett, former CEO of Covad, is chief strategy officer and head of wholesale markets; and Bruce Chatterley, former CEO of Speakeasy, has been named president of the business markets unit in charge of all non-wholesale customer sales, service and marketing.