MegaPath / DSL.net

MegaPath, the California-based company, has acquired listed DSL.net, based in Connecticut. MegaPath is a virtual private network (VPN) company, offering solutions and other managed IP services to businesses nationwide.

This acquisition, which involves additional funding from existing MegaPath investors, would further strengthen the company's market position and enable it to deliver a wider selection of managed IP (Internet Protocol) data, voice and security services.

The addition of DSL.net's broadband and voice over IP (VoIP) infrastructure would also give MegaPath greater control over the performance and reliability of its services, and improve its margins and profitability. DSL.net had sales of USD 68.4m in 2005.

DSL.net currently offers services via its own facilities in over 350 collocations in Vermont, New Hampshire, Massachusetts, Connecticut, Pennsylvania, Rhode Island, New York, New Jersey, Delaware, Maryland, 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 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.

DSL.net. is a leading nationwide provider of broadband communications services to businesses. The company combines its own facilities, nationwide network infrastructure and Internet service provider (ISP) capabilities to provide high-speed Internet access, private network solutions and value-added services directly to small- and medium-sized businesses or larger enterprises looking to connect multiple locations.

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