April 15, 2003 -- Pequot Ventures, a unit of Pequot Capital Management, has made an offer to acquire the remaining assets of managed hosting provider Interliant, Inc. in a Chapter 11 sale, the two companies said today.
The bankruptcy court will now hold an auction of the Interliant assets, currently scheduled for May 27. If Pequot is the high bidder, the two companies said they expect the deal to close in the first week of June.
Under the terms of the deal, outlined in bankruptcy court documents, Pequot will pay $4.7 million for Interliant's onoging business, including its remaining customers and about 52,000 square feet of data center space assets at sites in Houston and Vienna, Va.
The acquired assets include substantially all of Interliant's remaining assets, including its messaging, hosting, security, and consulting businesses, as well as its UK operations.
"This transaction provides strong financial support and allows our customers to be confident about our ability to provide them with services well into the future,'' said Francis J. Alfano, Interliant's president and CEO.
"Interliant is well positioned to be a leader in the growing managed infrastructure market,'' said Gerald A. Poch, managing general partner of Pequot. ``We are very excited about the future of this business.''
Pequot said that if it prevails in the auction, it "expects to expand Interliant's activities from its current base of operations."
Interliant filed for bankruptcy last August, and has since restructured leases at its data center facilities in Vienna, Virginia and Houston, Texas. It shut its Atlanta data center and sold the customers from that site to Inflow Inc.
It has also restructured its equipment leases, and recently auctioned surplus equipment in an auction at Alpharetta, Ga.
The company provides managed infrastructure solutions including messaging, security, and hosting.
Pequot Ventures is the direct venture investment arm of Pequot Capital Management, Inc., a private investment firm with approximately $6 billion of assets under management.