GTT Communications, the leading global cloud networking provider to multinational clients, has signed an agreement to acquire hosted voice & unified communications provider MegaPath’s Managed Services business for $144.8 million and shares. In 2014, MegaPath’s Managed Services business generated recurring revenue of approximately $124 million and adjusted EBITDA of approximately $20 million. GTT operates a global Tier 1 IP network connecting to any location in the world and with any application in the cloud.
In January this year, MegaPath sold its network services business to Global Capacity, a Chicago-based connectivity-as-a-service company. With both its transactions, MegaPath is expected to focus on Unified communications and cloud business.
MegaPath said that the company will devote its resources to revenue growth and product expansion by increasing investment in innovative value-added services that satisfy the current and future needs of business customers.
Rick Calder, GTT President and CEO
This acquisition furthers our growth strategy to expand our cloud networking services by adding a comprehensive portfolio of managed services. We are adding significant expertise to deliver managed security services with multi-layered solutions to protect large enterprises from cyber threats. This transaction accelerates our progress toward achieving our next financial objective of $400 million in revenue and $100 million in adjusted EBITDA.
Craig Young, CEO MegaPath
Today’s agreement provides great benefit to our Managed Services customers, while furthering MegaPath’s strategy of becoming a leading global cloud communications provider. Our Managed Services customers will continue to receive the high-level of support that enterprise customers require, while benefitting from GTT’s expertise in delivering high-performance global connectivity and end-to-end network management services.
