Megaport to acquire Latitude.sh, expanding into compute services

BRISBANE - Network-as-a-Service provider Megaport Limited (ASX:MP1), currently valued at $1.62 billion, announced Monday it has entered into an agreement to acquire Compute-as-a-Service company Latitude.sh. The stock has experienced significant volatility recently, dropping 13.61% over the past week despite delivering a remarkable 106.76% return over the last year, according to InvestingPro data.

The acquisition will combine Megaport's connectivity services with Latitude.sh's compute infrastructure, allowing enterprises to deploy and connect workloads across more than 1,000 data centers in 26 countries.

Latitude.sh provides on-demand CPU and GPU infrastructure in 20 markets across 10 countries, with a fleet of over 7,700 servers including NVIDIA AI clusters. The company serves more than 1,150 customers with workloads ranging from enterprise applications to AI training.

"By bringing Latitude.sh into the fold, we're extending that promise beyond the network, and into high-performance, optimized compute, complementing cloud providers," said Michael Reid, CEO of Megaport, in a press release statement.

The integration aims to create a platform where customers can rapidly deploy compute resources and connect them with clouds, partners, and data centers globally.

Gui Soubihe, CEO of Latitude.sh, described the deal as "a tremendous opportunity" to extend the company's compute platform into Megaport's global network.

The transaction is expected to close on or before December 31, 2025, subject to customary closing conditions and approvals. Financial terms of the acquisition were not disclosed.

Megaport currently operates in over 1,000 enabled locations worldwide and is ISO/IEC 27001 certified.

In other recent news, Megaport Ltd. has seen a shift in analyst sentiment following its latest financial results. JPMorgan has downgraded the company's stock rating from Overweight to Neutral. This change comes despite Megaport's announcement of a 4% revenue beat on consensus for FY26, which the firm described as "solid." However, the company's guidance for FY26 EBITDA and capital expenditure fell short of expectations, prompting the reassessment. JPMorgan has also adjusted its price target for Megaport, raising it from AUD12.30 to AUD14.50. These developments highlight the mixed reactions to Megaport's financial performance and future outlook. Investors may want to consider these recent changes in analyst perspectives when evaluating their positions.

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