MegaPath Invests in With Option to Acquire

MegaPath Inc., a provider of VPN solutions and other managed IP services to businesses nationwide, announced it has made a strategic investment in Inc. which will allow MegaPath to acquire substantially all of the equity of upon receiving regulatory and shareholder approval. This acquisition, which involves additional funding from existing MegaPath investors, would enable it to deliver a wider selection of managed IP data, voice and security services.

MegaPath can offer customers expanded broadband coverage throughout the United States and Canada. MegaPath also can provide a full range of integrated security, IP telephony, remote access and site-to-site IP VPN services to augment the services. currently offers services via its own facilities in more than 350 colocations in Connecticut, Delaware, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont, Virginia and Washington, D.C.

The associated round of funding includes certain of MegaPath’s existing investors, including Fidelity Ventures, Rho Ventures, U.S. Venture Partners, Columbia Capital, Trident Capital and Boston Millennia Partners. MegaPath said it will use this funding to accelerate the growth of its managed IP service business and expand its portfolio of value-added services organically and through strategic acquisitions. The acquisition is subject to shareholder and regulatory approval; final closing is expected by the end of 2006, however, this date is subject to change. Inc.  

MegaPath Inc.

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