RealTime IT News

Verio Closes Hiway Acquisition

Internet service provider Verio, Inc. this week finalized its acquisition of Florida's Hiway Technologies, Inc., with a reported price tag of $351 million.

The Hiway acquisition adds more than 2,000 resellers to Verio's worldwide distribution channels,bringing the company's reseller roster to more than 4,000 in more than 170 countries.

With the acquisition finalized, Verio said it now hosts more than 260,000 Web sites and is claiming to be the largest domain-based Web hosting firm. Its subscribers represent more than 7 percent of all domain names currently in use, the company said.

Verio announced the cash and stock acquisition of Web hosting firm Hiway in July. The company's strategy is to target the small- and medium-sized business market with its connectivity and hosting services, and to leverage itself into the growing e-commerce market.

"This acquisition, in combination with Verio's own Web-hosting base, clearly establishes Verio as the world's preeminent Web-hosting company and gives us tremendous leverage to take a leading role in providing businesses with their e-commerce and related enhanced Internet capabilities," said Verio chief executive officer Justin Jaschke.

"With the closing of Hiway, we expect Web hosting, electronic commerce and other enhanced services to comprise about 50 percent of Verio's revenue stream."