August 13, 2007 -- (WEB HOST INDUSTRY REVIEW) -- Internet solutions provider NaviSite (navisite.com) announced on Monday that it has acquired Web hosting providers Alabanza (alabanza.com) and Jupiter Hosting (jupiterhosting.com) for approximately $15.5 million.
Financial advisory firm RBC Daniels (danielsonline.com) said Monday it had represented Alabanza in the deal.
NaviSite says Alabanza offers a suite of dedicated and shared Web hosting services, as well as a highly automated proprietary software platform for provisioning and managing high volume hosting solutions while Jupiter Hosting offers dedicated and complex managed hosting and infrastructure services that include high quality and high bandwidth applications such as IPTV, video on demand and progressive video delivery.
"Alabanza and Jupiter fit neatly into our managed hosting offerings and were acquired at less than four times expected synergistic EBITDA," says Arthur Becker, CEO of NaviSite. "These transactions add new customers with average revenue per square foot densities of approximately $4,700 per year and create significant opportunities to up-sell and cross-sell our entire suite of managed services."
The acquisitions were financed predominately through cash on hand and are expected to be accretive to adjusted EBITDA immediately and fully integrated by NaviSite's second quarter.
