| NaviSite
Completes Acquisition of Interliant, Inc. Assets; NaviSite
Closes on Sale Order by Bankruptcy Court [20th
May 2003]
ANDOVER, Mass., May 20, 2003 (BUSINESS
WIRE) -- NaviSite, Inc. (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.
(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.
About Interliant
Interliant, Inc. (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, (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.
SOURCE: NaviSite, Inc.
NaviSite, Inc.
Jeffrey Hodnett, 978/946-7833
Jhodnett@navisite.com
or
Blanc and Otus
Leanne Agurkis, 407/971-1197
lagurkis@blancandotus.com
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