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NaviSite Sets Stock Sale

Carrier Hotels Staff Posted Jan 22, 2004

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Managed hosting provider NaviSite, Inc. plans to sell up to 9.2 million shares of common stock, the company said today. The offering will include 7.3 million newly issued shares and 700,000 shares to be sold by existing stockholders, according to NaviSite, which will also make up to 1.2 million shares available for overallotments.

At the current share price of $6.24 a share, the offering could raise between $50 million and $60 million for the provider, which is based in Andover, Mass.

The lead underwriter of the offering is Thomas Weisel Partners LLC, with other underwriters including CIBC World Markets Corp. and SG Cowen Securities Corporation.

NaviSite is the primary operating unit of the US hosting assets controlled by Unicorn Holdings, whose principals founded Global Switch. In the past 18 months, the company has acquired hosting assets of COLO.COM, Applied Theory, NaviSite, Avasta, Conxion and Interliant.

In November, the company announced that the New York State Department of Labor is adding $52 million to its existing contract with NaviSite's ClearBlue Technologies Management unit.