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C Spire in deal to acquire regional telecom MegaGate

In a move to continue expanding services and diversifying its core telecommunications and technology services holdings,  C Spire says it will acquire Hattiesburg’s MegaGate Broadband, a regional provider of IP voice, data, and business telecommunications solutions.

c_spire_cmyk-MegaGate serves most Mississippi business markets as a competitive local exchange telecommunications provider and as an Internet service provider.  Founded in 1990, the company began operations in 1998 as a division of Cellular One, a wireless communications provider serving markets in south Mississippi.

C Spire did not provide the cost of the acquisition.

Kevin Pack, CEO of MegaGate, said he thinks MegateGate customers “will be in good hands as C Spire brings its customer-inspired approach to their business technology and communications needs.”

MegaGate Broadband logo 2The acquisition, which requires regulatory approval, is the latest in a series of moves by the C Spire that the Ridgeland-based company says are part of an accelerated and expanded focus on “innovative business, government, and consumer technology solutions.”

Last September, C Spire launched the nation’s largest statewide initiative to bring 1 Gbps fiber-based Internet access to homes in nine Mississippi cities.  In February, the company acquired Mobile, Ala.-based Callis Communications, a fast-growing provider of cloud-based communications services for businesses.

In one of its most aggressive efforts, C Spire plans to open in November a new $23 million Tier III+ data center in Starkville, which will power a full suite of enterprise cloud services and solutions for businesses across the Southeast region.

C Spire expects final regulatory approval of the merger within the next 60 days.

Started in 1998 as a division of Cellular One, MegaGate became a facilities-based competitive local exchange carrier and Internet service provider, initially offering dial-up Internet service to its wireless customers, and later adding voice, data, hosted phone service, and a variety of other telecommunications solutions to small and medium sized businesses throughout the state.



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