MegaPath Wraps Managed Services Sale, Promises Cloud Dedication

**Editor’s Note: Please click here for a recap of the biggest channel-impacting mergers in Q4 2014.**

Channel stalwart MegaPath says the sale of its managed-services business to GTT Communications “further positions [us] to focus on [our] strategic vision of becoming a … global cloud services provider.”

The $152 million deal closed on Wednesday.

MegaPath, which for years billed itself as a managed services provider, plans to dedicate resources from the sale to driving sales and investing more heavily in its core cloud services – notably hosted voice and unified communications.

McLean, Virginia-based GTT Communications provides cloud networking services to customers around the world. MegaPath will continue to offer its cloud-based services through channel partners and plans to maintain wholesale relationships with service providers – including GTT – to offer Internet access, private networking and managed security services to customers and partners.

Despite this change – and the sudden exit of Dan Foster as head of MegaPath’s cloud business in February – we wouldn’t expect MegaPath’s new direction to impact partners negatively. The company said that working with GTT will allow partners to sell more high-capacity services at “competitive” prices. MegaPath hired former Speakeasy COO Kurt Hoffman to replace Foster last month.

The company’s wheeling and dealing has been fast and furious over the past few months. It sold its network services unit to Global Capacity last fall.

MegaPath says its managed-services business serves 500 large enterprise clients.

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