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.
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.”
The 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.