RIDGELAND and HATTIESBURG — Mobile and Internet provider C Spire says it will buy MegaGate Broadband of Hattiesburg, which sells phone and Internet services to businesses.
The move, announced yesterday, is part of Ridgeland-based C Spire’s continued diversification into a broader array of phone, Internet and video services, which includes a new focus on business customers.
“We really want to be a full-service telecommunications provider focused on consumer wireless, broadband Internet, IP voice, wireless and cloud-based business services,” spokesman Dave Miller wrote in an email.
The price and other terms are not being disclosed.
Miller said the sale should close in about 60 days, pending regulatory approvals. He said no changes in MegaGate employment are currently anticipated. C Spire has about 1,250 employees.
Megagate was founded in 1998 as part of another wireless firm Cellular One, and became independent in 1990. Miller said MegaGate is strongest in southern Mississippi. It’s the second recent purchase of a business-focused firm for C Spire, which in February bought Callis Communications of Mobile, Ala.
As part of its diversification strategy, C Spire is also building a $23 million data center in Starkville to serve commercial customers and has been rolling out high-speed fiber optic service in nine Mississippi locations.
The company doesn’t release financial data or its number of customers. Strategy Analytics, a market research firm, estimates that C Spire, the nation’s sixth-largest wireless firm, has about 1 million subscribers. Its wireless business serves Mississippi as well as Memphis, Tenn., and part of the Gulf Coast as far east as Pensacola, Fla.
C Spire is a unit of Telapex Inc, which is controlled by the Creekmore family. Telapex also owns C Spire Fiber, Franklin Telephone Co. and Delta Telephone Co.
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