VPN and managed services providers Netifice Communications Inc. and MegaPath Networks Inc. have completed their merger, which the companies announced in February.
They did not disclose the terms of the transaction, although they did say Netifices acquisition of MegaPath involved an undisclosed amount in stock and cash, and included $35 million in additional funding from existing investors of both companies.
Craig Young will continue as chairman and CEO of the combined company, and industry veteran Jim Cragg has been appointed president and COO. The company which is operating under the MegaPath name is headquartered in Costa Mesa, Calif.
In February, Netifice Communications said the merger makes it the largest independent provider of managed broadband VPNs in North America. The company also said buying MegaPath expands its direct and indirect sales channels, which include wholesalers, integrators and VARs. Salespeople will be able to offer a full range of integrated security, remote access and site-to-site IP VPN services, including SSL, IPSec and MPLS, especially to users in vertical markets.
“This merger enables us to better serve our customers, which is our No. 1 objective,” said Young. “MegaPath can now offer a wider selection of products, greater network reach and expanded resources to address the needs of both small-to-medium size businesses and large enterprises.
MegaPath Networks Inc. www.megapath.net