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RealTime IT News

InterNAP Close to Acquisition of VPN Developer

InterNAP Network Services, a provider of Internet routing technology, has announced the company's intention to acquire virtual private network Developer VPNX.com.

InterNAP will exchange approximately 2.3 million shares, worth close to $92 million, for the California-based company.

The acquisition has been approved by the boards of directors of both companies and is expected to close by the end of the third quarter of 2000. This transaction is subject to certain closing conditions, including approval by VPNX.com's stockholders.

"The acquisition of the VPNX.com team gives us the talent to develop secure VPN technology for our P-NAP platform, and complements our strong relationship with Aventail, a leading service provider for building and managing business partner networks," says Tony Naughtin, President and CEO of InterNAP Network Services.

The company's investors include Mayfield Fund, Sandhill Financial, and Telos Venture Partners.

According to Morgan Stanley Dean Witter, the still-nascent Virtual Private Network market will grow significantly from an estimated $1.8 billion this year to $44 billion by 2009.