Internap Reaches Agreement To Acquire netVmg; Further Advancing Evolution of High-Performance Internet Solutions.
ATLANTA--(BUSINESS WIRE)--Sept. 8, 2003
Internap(R) Network Services Corporation (NASDAQ: INAP), the leading provider of performance-based routing services over the Internet, announced today that it has reached a definitive agreement to acquire privately held netVmg, the leading supplier of intelligent route control customer premise equipment (CPE).
The acquisition of Fremont, CA-based netVmg will extend Internap's unique, patented and patent-pending intelligent route control technology to the customer's premise, thereby enabling edge-to-edge, managed IP solutions that give customers greater control and performance across their entire IP network. In addition, the acquisition of netVmg will further Internap's geographical reach, allowing support of a broader range of enterprise customers throughout North America and internationally.
"This is a significant advancement in the evolution of Internap's service offerings and how our enterprise customers utilize the Internet to conduct business," said Greg Peters, president and chief executive officer of Internap. "The acquisition will solidify Internap's leadership role in network and premises based premium connectivity for facilitating businesses' migration from traditional data networks to the Internet."
"With this acquisition, the edge appliance route control space will have a provider with a proven track record for vision in product development and leadership," added Dave Abrahamson, vice president of sales and marketing, Internap. "Customers can feel confident their edge route control provider will be with them for both on-going support and as a partner in delivering leading-edge intelligent route control services."
The combined Internap-netVmg offerings will provide the broadest flexibility in managing a customer's IP network, delivering the industry's highest levels of performance, reliability and scalability. Internap's highly skilled, direct sales force of more than 100 professionals and its indirect distribution channels will market the complete netVmg Flow Control Platform (FCP) product line.
In anticipation of the Internap acquisition of netVmg, a number of new customers have already signed on, including Storage Continuity, LLC, of Cleveland, OH. Storage Continuity provides businesses with secure, outsourced enterprise storage solutions.
"Our outsourced storage services and technology help ensure that customers have the ability to control and manage one of their most critical business assets -- their stored data," said Dave Scantling, president and CEO of Storage Continuity. "Outsourcing of this strategic asset requires that our network deliver 100 percent uptime at the highest quality possible. Internap's combined intelligent routing service and route control appliances will guarantee us an Internet-wide service level agreement, while giving us the control and visibility we need to meet the needs of our financial services, distribution and manufacturing customers."
Other recent wins include: RackMy.com; PAJO Tech; and Mentor Graphics.
These customers join netVmg's existing customers, who include: Ventures Online, nVIDIA, ProQuest, Charles Schwab, ADP, hotjobs, Safeway, Arizona Department of Commerce, NOBELcom.com, collegeboard.com and ONWARD. UPWARD.
The acquisition is expected to close in late September. Specific terms of the acquisition were not disclosed, but the consideration paid by Internap will consist of equity only and not cash.
Internap provides enterprises with enhanced IP network services and intelligent routing products they need to bring performance, continuity and security to the public Internet. The company delivers the industry's broadest flexibility in managing mission-critical IP applications through its portfolio of Internet-based solutions. Internap's patented and patent-pending intelligent route management technology and industry-leading service level guarantees provide 100 percent Internet availability, allowing customers to bypass congestion points and avoid other challenges that plague conventional Internet connectivity.
Internap currently serves more than 1,500 Fortune 500 and mid-tier business customers in the financial services; travel/hospitality; manufacturing; media/entertainment; technology and retail industries. The company provides services in numerous key markets throughout the United States, Europe and Japan including Atlanta, Boston, Chicago, London, Los Angeles, New York, San Francisco, San Jose, Seattle, Tokyo and Washington, D.C. For more information, please visit www.internap.com.
Internap and P-NAP are registered trademarks of Internap. All other trademarks and brands are the property of their respective owners. For more information, please visit www.internap.com.
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|Date:||Sep 8, 2003|
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