August 11, 2003 -- NaviSite Inc. will acquire 10 data centers from ClearBlue Technologies Inc. in an all-stock deal valuing the centers at $2.8 million, the companies said today.
NaviSite had been managing the facilities since January, when it acquired much of ClearBlue's assets. Both NaviSite and ClearBlue Technologies are among the US hosting assets controlled by Unicorn Holdings, whose principals founded Global Switch.
The 10 data centers were built by COLO.COM, and were among 22 facilities acquired by Unicorn's BJK Investments for $44 million in a bankruptcy auction of COLO.COM's assets in September 2001. BJK later rebranded as ClearBlue.
Six of the 10 data centers were acquired today, while the other four will be transferred to Navisite "under certain conditions" in February 2004 at no additional cost.
The 10 data centers are located in New York, Chicago, Dallas, Los Angeles, San Francisco, Las Vegas, Milwaukee, Santa Clara, Calif., Oak Brook, Ill. and Vienna, Va. The centers have a combined footprint of about 116,000 square feet.
NaviSite will use 1.1 million shares of its common stock to acquire the ClearBlue subsidiaries that own the data centers. Shares of NaviSite were trading at $2.55 this morning on the NASDAQ market, valuing the acquisition at just over $2.8 million.
NaviSite also acquired customer contracts, equipment and equipment leases, employees, third party contractors, and insurance contracts.
"In addition to the synergy of people and processes, this transaction is designed to make our business more transparent to our customers, employees and investors and allow them to understand the true value of the NaviSite business and strategy" said Arthur Becker, CEO of NaviSite.
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.