What's Left to MegaPath - RAD-INFO Inc.

What’s Left to MegaPath

In 2010, Speakeasy and Covad got married to MegaPath to make a $500 million MSLEC (as they announced it). In 2012, they acquired IP5280, a Broadsoft based ITSP that had 1000 customers and 10K endpoints. MegaPath was a combination of many acquisitions over the years including DSL.net. We know how integration goes in telecom — poorly — so no doubt they had some issues. Piecing together a nationwide MPLS network with DSL, T1 and techs is a tough nut to crack. Competing against cable is like smoking cigarettes, eventually it will be the cause of your death.

Fast forward to 2015 and what is left of MegaPath? In September, Global Capacity acquired MegaPath’s Network Services business unit (and its 300 employees). “MegaPath will become Global Capacity’s largest wholesale customer.”

“Global Capacity remains a privately held company owned by Pivotal Group.” Yeah, after going BK in 2010, Pivotal bought them in 2011 out of BK for $65M. The One Marketplace is just a portal to order circuits from GC, which will now include the MegaPath network.

In September (2014), MegaPath was planning to continue to operate its managed voice, data, security and cloud services businesses. Yet MegaPath just sold its Managed Services business to GTT. “GTT will pay $144.8 million in cash and $7.5 million in GTT common stock for the acquisition. In 2014, MegaPath’s Managed Services business generated recurring revenue of approximately $124 million and adjusted EBITDA of approximately $20 million.”

So again I ask, what’s left over there? They have been playing music chairs with the top people for a few years. Last year, there was a big rumor that MegaPath and Cbeyond were merging. Both companies say that wasn’t so. It has been a bumpy ride since then.

Tags: megapath, mergers
Related tags: services business, global capacity, approximately million, managed services, megapath, million