RealTime IT News

ISP Picks Up Digital Chainsaw

High Speed Access Corp. recognizes that there are two ways to quickly expand its services in the broadband arena; build a business, or buy one.

HSA Monday entered into a definitive agreement to acquire Digital Chainsaw, a Florida-based Web hosting and systems integration firm doing business as NetPerformance.

NetPerformance was formed in 1999 from the merger of U. S. Technologies and Digital Chainsaw. While financial terms of the transaction were not disclosed, the acquisition marks a move by HSA to diversify its commercial broadband portfolio and include Web hosting and Virtual Private Network services.

HSA currently provides cable, digital subscriber line and IP-based telephony services to residential and commercial customers in more than 140 markets nationwide.

The broadband service provider recently announced the expansion of its digital subscriber line service strategy in targeted U.S. markets. The plan includes launching DSL services in five major markets this year and approximately two dozen other non-cable markets by the end of next year.

Additionally, HSA recently launched a $100 million commitment to rollout Internet telephony services, funded in part by an equity investment made by Lucent Technologies Inc.

Dan O'Brien, HSA president and chief executive officer, said the acquisition underscores its commitment to the staying on target with its commercial DSL expansion plan.

"HSA has made excellent strides in building an infrastructure that addresses the growing demand for commercial broadband services," O'Brien said. "By adding the strength of NetPerformance to our cable modem, DSL and IP telephony initiatives, HAS will enjoy the opportunity to provide businesses a dynamic end-to-end solution for all of their web server management and maintenance needs."

O'Brien added that the NetPerformance acquisition means that HAS is capable of offering a complete suit of high-speed connectivity services, Web design and hosting, as well as integrated broadband communications.

"Not only will we offer businesses broadband connectivity services and critical web hosting tools that are secure, easy to use and affordable, but we will give our affiliates a tremendous growth opportunity in the commercial sector," O'Brien said.

NetPerformance reported it earned $4.3 million in business revenues last year. It currently provides Web hosting, e-commerce, design systems integration and related services to more than 8,500 commercial customers.

B. Judson Hennington, NetPerformance president and chief executive officer, said it chose to work with HSA because of its strong backing, experienced customer support services and advanced network operations center.

"By combining our integrated, end-to-end Internet-based solutions with HSA's commercial reach, business customers will be able to experience one of the best suite of services the marketplace has to offer," Hennington said.

NetPerformance will be a wholly owned subsidiary of HSA following the completion of the deal next month.