Fusion Connect Inc. on June 15 closed the acquisition of MegaPath Holding Corp.

At the closing, the company paid about $61.5 million of the $71.5 million purchase price in cash and about $10 million of the purchase price was paid in 1,679,144 shares of Fusion's common stock at $5.775 per share, issued to the former stockholders of MegaPath who are "accredited investors," according to a Form 8-K filed June 18.

Furthermore, $2.5 million of the cash consideration was deposited into an escrow account with Citibank NA, as escrow agent, to be held for one year to secure the indemnification obligations in favor of Fusion under the merger agreement. The cash consideration, as well as certain expenses associated with the acquisition of MegaPath, was funded from about $62 million of borrowings under the first lien credit and guaranty agreement.

At the closing of the deal, Fusion MPHC Acquisition Corp. merged with and into MegaPath, with MegaPath surviving the merger; the entity simultaneously changed its name to Fusion MPHC Holding Corp.