Feb. 5, 2002 -- The lead image on Exodus' new home page depicts fast-moving traffic emerging from a darkened tunnel into bright sunlight.
The company's new owner, Cable & Wireless, hopes this will prove an apt metaphor for the next phase of Exodus' existence.
On Friday, C&W completed an $850 million acquisition of most of the assets of Exodus, the former web hosting high-flier which filed for Chapter 11 bankruptcy protection last September.
The new motto: "Together we'll deliver the Internet promise better."
It's a rebranding that reflects Exodus' dual status as both a standardbearer of the Internet boom and victim of the ensuing bust.
Cable & Wireless will invest an additional $250 million to integrate the Exodus operations into its Digital Island subsidiary, a process that should take three months. The combined hosting firm will operate as "Exodus, a Cable & Wireless Service."
C&W cited "comprehensive market research" in opting to continue with the Exodus brand, notwithstanding the many puns it launched last year amid the departure of customers and investors.
Exodus filed for Chapter 11 bankruptcy protection on Sept. 26, saying it had overexpanded as it pursued market share. On Nov. 30 Cable & Wireless announced its intention to acquire most of Exodus in a deal valued at approximately $850 million.
Managing the hosting unit will be new Exodus CEO Bill Austin, previously chief administrative officer and CFO of the pre-bankruptcy Exodus. Austin will report to Don Reed, Chief Executive of Cable & Wireless Global.
"I am excited about what the future holds for each of us," said Austin. "By teaming with Cable & Wireless and its Digital Island subsidiary, we have greatly expanded our global reach and will be able to bring forth these industry-leading solutions with greater agility and on a much larger scale than ever before."
"Cable & Wireless' financial strength, scale and world-class IP infrastructure ensures that Exodus' customers will get the quality and guaranteed continuity of service that they are seeking from providers of mission-critical services," said Graham Wallace, chief executive of Cable & Wireless
"Bill Austin has helped steer Exodus successfully through the Chapter 11 process and his extensive experience of both finance and business makes him ideal to lead the business to profitability."
His first challenge: stabilize the existing Exodus customer base. In a letter to customers Friday, Austin reassured them that the transition would be smooth.
That customer base is smaller, at 3,200, compared to more than 4,500 in the first quarter of 2001. Other assets acquired by C&W include 26 of Exodus' 44 operational data centers, with approximately 4 million square feet of gross space. C&W's business plan calls for is expected the Exodus unit to become EBITDA positive during calendar 2003.
Cable & Wireless is a major global telecommunications business with customers in 70 countries and annual revenues of over $11 billion