Global Capacity Acquires MegaPath's Network Services Business Unit

By Claire Cleveland

**Editor’s Note: Please click here for a recap of the biggest channel-impacting mergers in Q2 2014.**

MegaPath is selling its wholesale business and national colocation aggregation network to Pivotal Group, a private equity firm. Pivotal plans to merge those assets with its wholly owned portfolio company, Global Capacity, a “connectivity as a service” provider.

The deal gives Global Capacity more than 400 new wholesale customers and provides MegaPath with additional financial resources to support the growth of its managed services and cloud businesses. MegaPath will now devote all of its resources to driving growth in those expanding markets – increasing investments in value-added services that satisfy the current and future needs of SMB and enterprise customers.

“Today’s deal creates a more focused MegaPath, with increased access to capital to fund our strategic, high-growth, value-added services,” said D. Craig Young, executive chairman of MegaPath. “MegaPath now has a greater capability to invest in a product growth strategy to meet the needs of our customers and partners.”

While Global Capacity takes over the company’s wholesale business and related national colocation aggregation network, MegaPath is maintaining its voice network, MPLS and security networks, helping ensure that its cloud and managed services customers continue receiving the same performance and quality that they have come to expect.

Terms of the deal were not disclosed.