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Response Networks Buys AperServ, Adds VC

Upgrading its service level agreement (SLA) technology, Response Networks has acquired rival AperServ Technologies for an undisclosed sum.

The acquisition unites AperServ's trouble-ticket integration, SLA credit calculator and Web monitoring services with Response Networks' service level accountability, performance and quality of service management products.

Also included in the deal is an investment in Response Networks by AperServ's investors, including Walker Ventures, the Maryland Angels Council and Terra Lycos Ventures, closing out Response Networks' recent round of funding announced last fall.

Ted Joseph remains chairman and CEO of Response Networks and will be joined by AperServ founders Greg Keough and Tim Keough.

Response Networks headquarters will remain in North Andover, Mass., and AperServ's employees have joined Response's Alexandria office location.

"The combined capabilities of Response Networks and AperServ will result in a powerful solution to the problem of establishing and administering service level agreements," said Rick Sturm, president of Enterprise Management Associates, which expects spending in the service level management market to reach $3 billion to $5 billion by 2005.

Response Networks' management tools can monitor network, Web, database, VPN, VoIP, LDAP and e-mail availability, service quality and performance. AperServ's services are based on management technology that can monitor a number of specific Web and network transactions and applications.

AperServ's technology also includes an integrated workflow engine that automatically issues and manages "trouble tickets" to service providers when performance problems are detected, enabling faster problem resolution; and a service level credit calculator that can automatically identify potential credits due when SLAs are violated.

Editor's note: This report was written by the staff of dc.internet.com, an internet.com site.