Global Capacity wraps acquisition of MegaPath's wholesale division

Global Capacity has put the final touches on its acquisition of MegaPath's wholesale business, enhancing its wholesale and Dedicated Access customer base.

This deal has implications for both Global Capacity and MegaPath.

For Global Capacity, the acquisition is about scale. By completing this transaction, Global Capacity immediately gains access to more than 400 new wholesale customers and over 20,000 small business Dedicated Access customers. Global Capacity said that the services, pricing and terms and conditions of service will not change.

Now that the acquisition is closed, Global Capacity will assume ownership of MegaPath's wholesale business and national colocation aggregation network. About 300 of MegaPath's 1,000 employees will join Global Capacity, acting in similar roles they held at MegaPath, while MegaPath will retain all of its remaining employees to continue supporting its VoIP and managed services commercial businesses.

The MegaPath assets will provide more connectivity options for Global Capacity's One Marketplace platform. Already, the platform leverages 41 points of presence (PoPs), 2,007 central offices (COs) and over 4,500 last-mile network interconnections to deliver services to over 20,000 business and more than 400 application service providers, telecommunication carriers, managed service providers and system integrator customers.

Meanwhile, MegaPath will get cash to reduce its debt and dedicate more funds into its growing managed services and cloud businesses. MegaPath will also continue to own and operate its nationwide MPLS-enabled IP network, which can prioritize real-time traffic with QoS for business-critical applications like voice and security.

For more:
- see the release

Related articles:
Global Capacity enhances reach to 5,000 rural communities via INDATEL pact
MegaPath's Global Capacity sale poses new managed service opportunities, challenges
Global Capacity snaps up MegaPath's wholesale unit
Global Capacity, PEG Bandwidth target the rural market interconnection gap
 

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