Craig Young, Chairman and CEO of MegaPath noted, “for too long in the telecommunications industry, customer service and reliability have taken a back seat. With the combination of MegaPath, Covad and Speakeasy, we are bringing to market a leading nationwide IP network to deliver a complete line of end-to-end managed services, including voice, data and security. Small, medium and large enterprises will now benefit from a new service provider that is willing to invest in advanced services, while remaining heavily focused on customer service.” Let’s take this a step further. MegaPath operates one of the largest end-to-end communications networks in the country.
Moving forward, MegaPath will serve the communications market through two divisions: a wholesale operating division, and a direct, business markets division. This combination is powerful because we can provide customers and partners with complete voice, access, private networking, and managed security solutions for business customers of all sizes.
MegaPath, Covad and Speakeasy today announced regulatory approval and the completion of their merger, creating a next generation Managed Services Local Exchange Carrier (MSLEC). The new company will have relationships with more than 85,000 business customers and over 4,500 partners throughout North America. The combined company will be called MegaPath and will operate one of the largest end-to-end facilities-based IP communications networks in the country.
MegaPath continues to grow, after acquiring Covad now SpeakEasy has agreed to merge it’s business. So what should we call them now? Megovadsy?
Seattle WA, San Jose and Costa Mesa, CA – June 10, 2010 – Speakeasy, a Best Buy company (NYSE:BBY), has entered into an agreement to combine its business with Covad Communications Company and MegaPath Inc. in a deal that will create the first managed services local exchange carrier (MSLEC) able to provide a full range of IP voice, security, VPN and Internet services nationwide. The transaction is expected to close in the third quarter of 2010, contingent upon closing of the previously announced transaction between MegaPath and Covad. Financial terms will not be disclosed. Continue reading Megovadsy? Speakeasy to Combine with MegaPath and Covad
Covad Communications Company, a leading national provider of IP broadband services, and MegaPath Inc., a leading provider of managed IP data, voice and security services in North America, today announced an agreement to combine the operations of Covad and MegaPath.
Pending federal and state regulatory approvals, the transaction will create one of the largest managed service local exchange carriers (MSLEC) in the United States. The combined businesses will have the largest Ethernet, DSL and T1 footprint in North America and be the only MSLEC capable of providing a full range of Internet, voice, security and VPN services nationwide.
“This transaction brings together two industry leaders who will focus on expanding service offerings and distribution channels to further our leadership positions in the SMB, enterprise and wholesale markets,” said D. Craig Young, MegaPath CEO and the new Executive Chairman of the combined businesses. “By leveraging the strengths of each company, we will provide customers and partners with expanded expertise, broader innovative services and a powerful network that simplifies the way they communicate and conduct business online.”
“We will continue to provide innovative services and superior automation to our wholesale partners, and by adding MegaPath’s leading managed service offerings, we will further enhance the value we deliver to the market,” said Pat Bennett, CEO of Covad, who will continue as Chief Executive Officer. “The combination of these two companies creates a powerful new business model that provides users and partners with the industry-leading connectivity and services they require to support their critical business communications needs.”
Covad offers IP broadband services in more than 4,400 central offices nationwide through its commercial and wholesale distribution channels. Covad wholesale partners include leading providers such as AT&T, Verizon Business and Sprint; MegaPath delivers value-added communication services, including hosted VoIP, managed security, MPLS VPNs for connecting multiple sites, and SSL VPNs for connecting remote users and business partners. MegaPath distributes its services via a large direct sales force and channel sales partnerships, and has over 19,000 direct SMB and enterprise customers.
By combining Covad’s robust network infrastructure with MegaPath’s wide selection of products and value-added services, the transaction promises to provide the companies’ partners and customers with a superior selection of cost-effective IP voice, data communications and security solutions.
“This is a great deal for Covad and MegaPath stakeholders and customers, creating an industry leader with the agility, expertise and resources to address customers’ rapidly growing and changing communications needs,” said Johnny O. Lopez, partner at Platinum Equity, which owns Covad. “With such complementary businesses, partners and customers will quickly see new services and capabilities that provide them even greater value, while the company realizes improved efficiencies and greater profitability, and enhanced opportunities for growth through acquisition.”
The combined businesses will be owned by Platinum and MegaPath investors. Terms of the deal were not disclosed. The transaction is subject to federal and state regulatory approvals and is expected to close by the end of Q3 2010.
Read more: http://www.megapath.com/news/2010/COVAD-AND-MEGAPATH-ANNOUNCE-MERGER-AGREEMENT.cfm#ixzz0jqZ5wVZ1