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RealTime IT News

RMI Continues Expansion by Acquisition

In a move to bulk-up its Silicon Valley presence, RMI.NET Inc. Tuesday acquired the dedicated dial-up and Web hosting divisions of Nova Media Group for $1.2 million in common stock.

The acquisition of portions of the premier hosting facility is part of RMI.NET's plan to expand their sales operations in the San Francisco Bay Area. Novo Media Group provides advanced design and hosting services for a number of brand name clients, including Sony, Toyota, Levi Strauss & Co., E*TRADE and Lotus.

Douglas H. Hanson, RMI.NET (RMII) chairman and chief executive officer, said the deal strengthens their presence in Silicon Valley and their ability to provide advanced services.

"The acquisition of these Novo Media Group assets strengthens our web hosting and web solutions business," Hanson said. "In addition, this acquisition enhances our efforts as a leading national e-commerce solutions company, and we intend to continue to focus our efforts in this area."

In a separate deal, RMI.NET also announced the acquisition of Sterling Online Services, Inc. The Colorado-based Internet service provider was purchased for an undisclosed amount of RMI.NET common stock.

Both deals are a part of RMI.NET's strategic plan to grow by acquisition. Since the beginning of this year, RMI.NET has purchased 12 companies for combined total of $18.2 million.