Fusion entered into a definitive agreement to acquire privately-held MegaPath for USD 71.5 million. Based in California, MegaPath provides a fully-integrated suite of cloud services including Unified Communications as a Service (UCaaS), cloud computing, security, SD-WAN and cloud connectivity.
The transaction is valued at under 5.0x pro forma adjusted EBITDA including anticipated cost synergies realised within 12 months of closing. Up to USD 10.0 million of the consideration is payable at Fusion’s election in unregistered shares of Fusion common stock priced at USD 5.78 per share. Fusion intends to fund the cash portion of the consideration via borrowings under its First Lien Senior Secured Credit Facility, USD 62.0 million of which is currently held in escrow for this acquisition. The transaction is expected to close within the next 90 days, subject to receipt of certain regulatory approvals and other customary closing conditions.
