The bumpy journey appears to have ended for beleaguered Interliant, a pioneer of the ASP industry, which has struggled for survival for the past year.
NaviSite Inc. , an Andover, Mass.-based application infrastructure and management services provider, today announced it has won the bid at a bankruptcy auction to acquire the assets and certain liabilities of Interliant.
In August, the Purchase, N.Y.-based Interliant filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code.
According to a NaviSite statement, under the terms approved by the bankruptcy court yesterday, NaviSite will acquire the assets and assume certain liabilities of Interliant (totaling approximately $6.2 million dollars) through a NaviSite wholly owned subsidiary. NaviSite will pay approximately $7.0 million dollars in cash, credits and short term notes.
The agreement is subject to a purchase price adjustment based on Interliant’s net worth calculated at closing. The transaction is subject to a Sale Order being entered by the bankruptcy court and the closing taking place by this Friday.
“The acquisition of the Interliant business is another important step in the growth of NaviSite,” Arthur Becker, CEO of NaviSite, said. “The earnings accretive nature of this transaction reflects NaviSite’s commitment to profitability and is a strong measure of our financial health.”
In the past six months, NaviSite has been active on the acquisition scene, picking up ClearBlue Technologies Management Inc. last December, Avasta in February and Conxion Corp in April.
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» Interliant Completes Divestiture of Noncore Assets » Interliant Files for Bankruptcy Protection » Weekly Review: Dark Days of August » Interliant Running Out of Cash » Interliant Sells Consulting Group » Interliant Lays Off 14%, Reduces Earnings Outlook Talk about the end of the Interliant era ASPnews Discussion Forum |
Interliant has a venerable ASP history. It was set up almost ten years ago to provide Lotus Notes as a hosted service, the first such shared-server deployment of Notes. In 1997, it became one of the first companies to offer ASP-style per-user pricing for hosted Notes and e-mail services, and it worked with Lotus to develop an early version of the vendor’s current QuickPlace online collaboration platform.
Interliant has recently focused on managed infrastructure services, including messaging, security and hosting as well as professional services. “Interliant’s experience, service offerings, and strong customer base in the messaging arena are an ideal fit to enhance NaviSite’s services portfolio,” Gabriel Ruhan, COO for NaviSite said in a statement. “This move will also allow NaviSite to leverage investments it has made in data center and infrastructure assets as well.”
NaviSite is listed by ASPnews as a Top 30 Service Enabler.
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