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Wheelings & Dealings: Global Capacity Completes Acquisition of MegaPath Network Services Business

January 08, 2015

Two words to keep an eye on in the network infrastructure transformation sector in 2015 are “connectivity” and “interoperability.”  They are closely related since the major data center concerns involve not just accommodating intra-data center traffic but also traffic between data centers. In fact, in regards to the latter, the news that data networking connectivity solutions provider Global Capacity has completed its acquisition of MegaPath’s Network Services business unit is noteworthy.

The combined company now has the scale and scope to be a significant force in the market going forward. The resulting $300 million company  will expand and enhance Global Capacity’s One Marketplace solution—a platform that leverages a combination of aggregation, automation and information to streamline and simplify the process of designing, pricing, procuring and delivering data connectivity solutions.

“Market factors, including Ethernet and cloud growth as well as the proliferation of higher bandwidth applications are creating unprecedented demand for connectivity services,” said Erin Dunne, Director of Research, Vertical Systems Group. “Global Capacity and MegaPath’s combined network and automation systems form a business that eases the process of extending network connectivity.”

As noted at the top expanded connectivity is key in this market. Global Capacity connectivity solutions can now reach over 14 million businesses across the U.S. It is capable of providing network connectivity to and from cloud, Internet, wireless and private networks, leveraging:  41 Points of Presence (PoPs), 2,007 Central Offices (COs) and over 4,500 last-mile network interconnections to, according to the company, “deliver on its brand promise of Connectivity Made Simple to over 20,000 business and over 400 application service providers, telecommunication carriers, managed service providers and system integrator customers.”

In addition, Global Capacity notes that is systems automate greater than 70 percent of orders from design to bill, and their platform currently processes over 26 million connectivity quotes annually. They also are promoting the One Marketplace’s analytics engine for its ability to provide extensive visibility and transparency into the highly fragmented global connectivity market.

“The disruptive nature of the One Marketplace platform has become increasingly self-evident in the market, and the ability to accelerate the scale and competitiveness of our platform through the addition of these assets is very exciting,” says Jack Lodge, President of Global Capacity. “We will continue our drive to fundamentally change the landscape of the global data connectivity market, and this acquisition accelerates the pace at which we can continue to disrupt the status quo.”

In terms of company structure now that the acquisition is complete, Global Capacity will remain a privately held company owned by Pivotal Group, and continued to be led by a seasoned management team. 

“We believe Global Capacity’s management team, leading technology, and global reach uniquely position the company to fundamentally transform the way companies buy network connectivity,” states F. Francis Najafi, Founder and CEO of Pivotal Group. “Completing the acquisition of the MegaPath strategic assets will scale our platform and significantly improve our competitive pricing capabilities in the market place.”

Reality is that the characterization of the global data connectivity market being “highly fragmented” might actually be a bit of an understatement.  As the world becomes more and more data center-centric, assuring those data centers can effectively and cost-efficiently connect is both a major challenge and a huge opportunity as this announcement highlights. 

Edited by Maurice Nagle

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