Ventures Online May Combine
data center signs letter of intent to buy reseller hosting specialist
Dec. 3, 2003 -- Data
center operator Data393 has offered to acquire hosting provider
Ventures Online in a deal that would combine two Denver-area providers.
launched last year, operating out of a former COLO.COM facility
in the Inverness Business Park in Englewood, a suburb of Denver.
The deal would expand its offerings, which currently include colocation
and managed servers. Ventures Online is a significant player in
the hosting reseller market, offering programs that allow customers
to automate the creation and maintenance of shared hosting accounts.
"We have signed a letter of intent to acquire certain
assets of Ventures Online as part of a transaction in which Ventures
Online will move into our data center," said Lee Woodward, president
of Data393. "The combined companies will be one of the few web
hosting companies to own its data center and be profitable with
positive cash flow. We are excited about the opportunity to join
with Ventures Online and continue to grow its hosting business."
Online CEO John Burns confirmed that the company is discussing
a business combination, but offered no details in a
post at Web Hosting Talk.
"What I can tell you is that Ventures Online is indeed in discussions
with another company," wrote Burns. "The ultimate goal is to enhance
the resources of the company so as to provide the very best products
and services for its customers. We expect that there will be some
changes in roles and responsibilities, which will be announced
when all of these details are finalized, but the current customer
focus and core values of Ventures Online will remain the same.
Burns said Ventures Online's staff are expected to remain and
there will be no immediate changes.
"Ventures Online has built a solid business by providing excellent
service to its web hosting customers," said Woodward. "This change
will enhance the company's reliable service and performance by
moving its operations into a facility with more bandwidth from
Tier 1 providers."
of Data393 include Hughes
Network Systems and ToolCASE, which provides technology solutions
for credit unions. Woodward bought the building housing Data393
in 1993 and later leased it to COLO.COM, which invested $8.5 million
in finishing the site as a raised-floor data center. COLO.COM
filed for Chapter 11 bankruptcy protection in May, 2001 and returned
the space to Woodward's company.
in September 1997, Ventures
Online grew from a web design and hosting business targeting
small to medium size Internet businesses to a full service technologically
advanced hosting company. In 2001, Ventures Online reorganized,
specializing in a wide range of Internet solutions from virtual
and dedicated hosting to colocation services, domain services
and data warehousing.