Global network operator GTT Communications has moved to acquire the managed services business of MegaPath, adding managed security services to its portfolio along with more than 500 large multinational customers.
Rick Calder, GTT Communications Inc. 's president and CEO, tells Light Reading that the MegaPath unit's managed security services and its customer base in sectors such as retail and hospitality were appealing to GTT.
"Those are areas that are new to us, and we like the industry depth we'll get there," he says. "And responding to cyber security threats is one of the number one challenges of CIOs."
The move is consistent with GTT's recent spate of acquisitions, as well as the company's intensifying focus on providing cloud and managed services to large enterprises. Meanwhile, the transaction continues the scaling back of the business of MegaPath Inc. , which sold off its network services business to Global Capacity in December. (See GTT Acquires More Cloud Prowess and Global Capacity Sees Growth in MegaPath Deal.)
GTT will pay $144.8 million in cash and $7.5 million in GTT stock for the unit, which generated revenue of $124 million and adjusted EBITDA of approximately $20 million in 2014. GTT's target for the entire company is $400 million in revenue and $100 million in adjusted EBITDA, Calder says.
— Jason Meyers, Senior Editor, Gigabit Cities/IoT, Light Reading