NaviSite Completes Acquisition of Interliant, Inc. Assets; NaviSite Closes on Sale Order by Bankruptcy Court.
ANDOVER, Mass.--(BUSINESS WIRE)--May 20, 2003
NaviSite, Inc. (Nasdaq: NAVI), a leading provider of Application and Infrastructure Management Services, today announced it has completed the acquisition of the assets and certain liabilities of Interliant, Inc. (OTCBB: INIT.OB). As announced on May 14, 2003, NaviSite was the successful bidder at the bankruptcy auction to acquire Interliant's assets. Interliant, a managed infrastructure solutions provider headquartered in Purchase, New York, specializes in managing corporate email, messaging and collaboration applications, and IT infrastructure for more than 300 customers.
Under the terms approved by the bankruptcy court, NaviSite has acquired the assets and assumed certain liabilities of Interliant, totaling approximately $5.7 million dollars, through a NaviSite wholly owned subsidiary. This amount was based on net worth adjustments to the initial $6.2 million as described in NaviSite's press release from May 14, 2003.
As consideration, NaviSite has paid approximately $7.0 million dollars in cash, credits and short term notes, according to a purchase price adjustment based on Interliant's net worth calculated at closing.
"Interliant's messaging application offerings will add a compelling component to NaviSite's enterprise product portfolio," said Arthur Becker, CEO of NaviSite. "We are excited about the potential that Interliant's expertise and services can offer to our existing customers, as well as the benefits that our capabilities can provide to the Interliant customer base."
In the last several months, NaviSite has also announced the acquisition of three additional companies: ClearBlue Technologies Management, Inc. in late December; Avasta, Inc., in early February; and, most recently, the acquisition of Conxion Corp, in April.
Interliant, Inc. (OTCBB: INIT.OB) is a provider of managed infrastructure solutions, encompassing messaging, security, and hosting plus an integrated set of professional services that differentiate and add customer value to these core solutions. The company makes it easier and more cost-effective for its customers to acquire, maintain, and manage their IT infrastructure via selective outsourcing. Headquartered in Purchase, New York, Interliant has forged strategic alliances and partnerships with the world's leading software, networking and hardware manufacturers, including Check Point Software Technologies Inc., IBM and Lotus Development Corp., Microsoft, and Sun Microsystems Inc.
On August 5, 2002, Interliant filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code. For more information about Interliant, visit www.interliant.com.
About NaviSite, Inc.
Founded in 1997, NaviSite, Inc, (NASDAQ: NAVI) is a leading provider of application and infrastructure management services. Selling to more than 500 customers consisting of mid-market enterprises, divisions of large multinational companies, and government agencies, NaviSite offers two distinct product lines: A-Services, an advanced portfolio of application management, development, and hosting services; and I-Services, a set of infrastructure services consisting of colocation hosting, bandwidth, and content and software delivery. Headquartered in Andover, MA, NaviSite has offices in Silicon Valley, Virginia and New York and also owns or operates 13 data centers throughout the US. For more information, please visit www.NaviSite.com or call 888-298-8222 (East Coast) or 888-755-5525 (West Coast). NaviSite is headquartered at 400 Minuteman Road, Andover, MA 01810, USA.
This release contains forward-looking statements that address a variety of subjects, including, for example, NaviSite's plans for the combined operations of NaviSite and Interliant, including cost savings, cost synergies, restructuring plans and efficiency gains, as well as expectations relating to revenues and profitability. The following important factors and uncertainties, among others, could cause actual results to differ materially from those described in these forward- looking statements: NaviSite's acquisition of the Interliant business may not produce expected cost savings, operational efficiencies or revenues; NaviSite's products, technologies and resources may not successfully interoperate with the technology, resources and/or applications of third parties; further slow down in general economic conditions; the loss of customers due to the shutdown of their businesses; decreased or delayed purchase patterns of prospective or current customers or loss of current customers and market consolidation; the decreased renewal rate of our customers; increased competition and technological changes in the markets in which NaviSite competes; the effects of any combination involving ClearBlue Technologies, Inc. and affiliated entities; the effects of any future acquisitions of businesses or technologies; changes in the uses of the Internet; and possible failure of systems or internal infrastructure. For a detailed discussion of these and other cautionary statements, please refer to the filings made by NaviSite with the Securities and Exchange Commission, including the most recent Annual Report on Form 10-K of NaviSite and the most recent Quarterly Report on Form 10-Q of NaviSite.
Interliant is a trademark of Interliant, Inc., in the United States, other countries, or both.
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|Date:||May 20, 2003|
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