MTU merger

Gillette Global Network and Eureka Broadband revealed today that they would merge in order to strengthen both companies and target key cities New York and Los Angeles with integrated voice and data services.

While the value of the all-stock transaction was not revealed the merger between the two privately owned companies was a “merger of equals,” according to Joe Gillette, president and CEO for GGN, soon to be CEO of the combined entity which has yet to be named.

The two companies have been in discussions for over a year, said Gillette. “We were both on the same time table and were about to go out and do a round of financing.” Both companies decided they would have a more compelling product set, management and services together rather than separately, he added. Plus with the tough capital market, consolidation of the two makes sense. “Consolidation is going to happen in the telecom space in general,” said Gillette. “And consolidation makes sense when the two companies come together [intentionally] rather than stumbling on it.”

While GGN targeted the multi-tenant unit and small to medium-sized business markets in New York, Eureka, a facilities-based network services provider, offers more of a national scope with operations underway in five markets across the country. Jeffrey Ginsberg, chairman and CEO of Eureka, will become chairman of the combined companies.