GTT plans to acquire MegaPath’s Managed Services business
McLean-based GTT Communications Inc. announced Thursday plans to acquire the managed services business of MegaPath Corp. using $144.8 million in cash and $7.5 million in GTT common stock.
GTT operates an IP network, which connects to any location in the world and with any application in the cloud. California-based MegaPath is a cloud communications company offering voice, unified communications, information technology and data networking services. It has offices throughout the country, including Herndon.
“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,” Rick Calder, GTT’s president and CEO, said in a statement. “This transaction accelerates our progress toward achieving our next financial objective of $400 million in revenue and $100 million in adjusted EBITDA.”
The deal is expected to close April 1, after it receives regulatory approvals.
In 2014, MegaPath’s Managed services business generated revenue of approximately $124 million and adjusted EBITDA of approximately $20 million.