host posted on June 10, 2010 17:26
Today speakeasy announced its plans to merge with megapath Covad.
This deal is going to create the first managed services local exchange carrier able to provide a full range of IP voice, security, VPN and Internet services nationwide.
That's huge!
Here's the official press release:
Seattle WA, San Jose and Costa Mesa, CA — June 10, 2010—Speakeasy (www.speakeasy.net), 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.
This transaction will combine Speakeasy's market-leading small business voice and data services with MegaPath's wide selection of products and value-added services for distributed enterprises, and make them available over Covad's intelligent, nationwide broadband network.
"The combination of Covad, MegaPath and Speakeasy will create the next-generation CLEC - an MSLEC that can offer customers and partners a full suite of managed IP broadband services and access over a powerful national network," said D. Craig Young, MegaPath CEO. "With the additional resources, mature channels and enhancements to the service portfolio, we expect the combined companies to extend their leadership position in the SMB, enterprise and wholesale markets."
Through a combination of direct sales and a national network of more than 8,000 IT consultant partners, Speakeasy has experienced significant customer growth, with more than 30,000 small business customers nationwide. Best Buy acquired Speakeasy in 2007 and will continue to be a minority investor going forward.
"Speakeasy brings small business expertise, well-developed market channels and technology expertise - especially in VoIP - to help the combined businesses dramatically accelerate growth," said Bruce Chatterley, Speakeasy president and CEO.
"Covad's intelligent broadband services platform and advanced network capabilities will provide an exceptional foundation for the collective product portfolios of Speakeasy and MegaPath," said Pat Bennett, president and chief executive officer of Covad. "This combination of companies will make these services available to millions of small, medium and large business nationwide directly or through our wholesale partners."
Prior to the close of this transaction, the companies will continue to be led by their respective management teams. Upon closing, the companies plan to continue to serve the market through two divisions: a wholesale operating division and a direct, commercial division. Craig Young, current CEO of MegaPath, will become executive chairman of the combined businesses; reporting to Craig will be Pat Bennett who will continue as CEO of Covad Communications, and Bruce Chatterley, current CEO of Speakeasy, who will be president of the commercial unit in charge of all non-wholesale customer sales and marketing division.
"We are excited about the vision and capabilities of this new business entity," said Glen Swanson, senior vice president, Business Customer Group, a unit of Best Buy serving the needs of small businesses. "As part of the Covad and MegaPath combination, Speakeasy will add significant capabilities to the new venture while providing Best Buy, through its continued investment, with a platform for additional learning about the business customer segment."