MegaPath, a cloud communication company, has sold its managed services business division to GTT Communications, a cloud networking provider, for $152.3 million.
Under this agreement, GTT will pay $144.8 million in cash and $7.5 million in GTT common stock to acquire MegaPath’s managed services division, which provides networking, internet access services and managed security services to more than 500 enterprise clients.
In 2014, MegaPath Managed Services business generated recurring revenue of approximately $124 million and and adjusted EBITDA of approximately $20 million.
“This acquisition furthers our growth strategy to expand our cloud networking services by adding a comprehensive portfolio of managed services. This transaction puts us materially closer to achieving our next financial objective of $400 million in revenue and $100 million in Adjusted EBITDA,” said Rick Calder, GTT president and CEO.
Last year in October, GTT Communications acquired UNSi, a communication company, providing data services to large enterprise and carrier clients for $40 million in cash and stock.
Meanwhile, BroadSoft selected GTT Communications, in February 2015, to extend the availability of BroadCloud Unified Communications (UC) services to clients across Europe and the United States through GTT’s global network.