Data Centers in San Francisco, California and Vienna, Virginia Sold to Virtustream
ANDOVER, Mass., March 31, 2010 – NaviSite, Inc. (NASDAQ:NAVI, news, filings), a premier provider of complex hosting, application management and managed cloud services for enterprises, has announced the sale of two data centers in San Francisco, California and Vienna, Virginia to Virtustream for $5.4 million. All current NaviSite co-location customers being served from these data centers will be transferred to Virtustream as part of the transaction. These colocation customers generated about $3.9 million in trailing annual revenue and a trailing gross margin loss of $0.5 million. The managed hosting customers will remain with NaviSite. The transaction is effective immediately. This sale is part of NaviSite’s strategic plan to divest its co-location-only data centers and focus on complex hosting and application management solutions for enterprise clients. Net proceeds from the sale will be used to repay debt.
“The sale of these assets is consistent with our strategy to focus on our enterprise business with cloud-enabled application management and hosting,” said Arthur Becker, NaviSite’s Chief Executive Officer. “We continue to sharpen our focus on our core strengths while enhancing our balance sheet.”
“By acquiring these strategic assets from NaviSite, we are expanding our high density data center footprint and enhancing the redundancy within our xStream cloud platform,” said Kevin Reid, Chief Executive Officer at Virtustream. “These sites increase our ability to provide a comprehensive set of SLAs around our infrastructure as a service offering.”
The Bank Street Group LLC served as exclusive financial advisor to NaviSite in connection with this transaction.
Virtustream (www.virtustream.com) is an infrastructure services firm committed to helping clients actualize the enterprise cloud by providing strategy, integration and managed services leveraging virtualization technologies, and xStream, our secure cloud platform. Virtustream delivers efficient infrastructure solutions, backed by guaranteed service levels and an industry leading resource-based pricing model, based on the company’s three pillars of service excellence including Professional Services, Cloud Services and Managed Services. Through a self-service, automated foundation built on nine years of virtualization expertise, Virtustream delivers flexibility that allows clients to capitalize on the flux of today’s dynamic business requirements. Headquartered in Washington, D.C., the privately held company also has offices in London, Dublin and the Channel Islands.
NaviSite, Inc. (NASDAQ: NAVI) is the premier provider of complex hosting, application managements and managed cloud services for enterprises. The Company provides a full suite of reliable and scalable managed services, including Applications Services, industry-leading Enterprise Hosting, and Managed Cloud Services for enterprises looking to outsource IT infrastructures and lower their capital and operational costs. Over 1,400 customers depend on NaviSite for customized solutions, delivered through a global footprint of over a dozen state-of-the-art data centers supported by more than 600 professionals. For more information on NaviSite services, please visit www.navisite.com.