NaviSite Acquires 2 Hosting Companies

NaviSite expands its customer roster and data center holdings with buyouts of Alabanza and Jupiter Hosting.

Infrastructure hosting company NaviSite announced Aug. 13 that it had acquired two smaller hosting companies, Alabanza and Jupiter Hosting, for a total of about $15.5 million.

The acquisitions add to NaviSites customer roster and hosting services portfolio, particularly with the addition of two new data centers, bringing the companys total to 15 data centers in the United States.

In addition to hosting services, NaviSite provides ERP (enterprise resource planning), CRM (customer relationship management) and business intelligence application consulting services as well as business process re-engineering and Oracle technology consulting.


Click here to read about NaviSites acquisition of CRM application service provider Surebridge.

Founded in 1995, Alabanza develops a suite of dedicated and shared Web hosting services along with a software platform to help other companies provision on-demand services to become Web hosting providers themselves.

Alabanzas Baltimore data center is used by more than 300 Web hosting companies, Web developers, system integrators, ISPs and telecommunications carriers, according to the companys Web site. Altogether, nearly 165,000 Web sites in 25 countries utilize Alabanzas services, the company said.

Jupiter Hosting offers dedicated and complex hosting and infrastructure services that include high-bandwidth applications like IPTV, video on demand and Progressive Video Delivery. The company also has a data center in Santa Clara, Calif. The company provides hosting and Web infrastructure services for more than 10,000 Internet sites.

"Alabanza and Jupiter fit neatly into our managed hosting offerings," Arthur Becker, CEO of NaviSite, based in Andover, Mass., said in a statement. "These transactions add new customers with average revenue-per-square-foot densities of approximately $4,700 per year and create significant opportunities to up-sell and cross-sell our entire suite of managed services."

The acquisitions were financed by cash on hand, according to NaviSite.

NaviSites acquisitions of Alabanza and Jupiter are not the first for the company, which acquired outsourced messaging company ClearBlue Technologies in 2002, Avasta, Conxion and Interliant in 2003, and Surebridge in 2004.


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