CMGI: No Merger Planned For 'Standout' NaviSite

By Rich Miller
CarrierHotels News Staff

Oct. 16, 2000 -- Saying it was responding to "inquiries from the investment community," Internet incubator CMGI, Inc. today stated that it "currently has no plans to merge or consolidate other companies within its infrastructure and enabling technologies segment into NaviSite, Inc."
NaviSite, founded by CMGI in 1997, provides outsourced Web hosting and application services for Web operations.
"NaviSite continues to be a stand-out in the CMGI network, exhibiting both significant revenue and customer growth since its Initial Public Offering last Fall," CMGI Chairman and CEO David Wetherell said in a statement.
"More importantly, their value proposition as a managed services leader, going above and beyond many of their hosting segment competitors who are simply providing co-location services, has placed them in a powerful position to build on that expansion over the next fiscal year. CMGI will continue to support NaviSite's accelerated growth, including the exploration of new strategic partnerships that can provide added reach and scale, but we have no plans to consolidate any of our existing businesses into NaviSite at this time."
On September 7, CMGI announced that it has formally organized its majority-owned operating companies and its venture capital affiliate into six lines of business, with a stated goal of reducing the number of operating companies to an optimal number of 5-10 in total.
NaviSite closed its 2000 fiscal year with overall revenue growth of 373 percent over 1999. Annualized revenue per customer also grew at an impressive rate of 93 percent over fiscal 1999.
CMGI, Inc., a leading global Internet operating and development company, represents a network of 70 established and emerging companies, spanning a range of vertical market segments.