August 8, 2005 -- (WEB HOST INDUSTRY REVIEW) -- Internet exchange and network service provider Terremark (terremark.com) said on Monday that it had acquired Dedigate, a European managed dedicated hosting provider. Terremark acquired all Dedigate's outstanding stock for 1.6 million shares of Terremark common stock.
Terremark says the purchase of Dedigate will expand its market reach and product offerings, expanding its presence in the enterprise space and complementing its international growth plans.
"We have been examining acquisitions that are accretive both on the basis of revenue and technology. Acquiring Dedigate is consistent with our strategy of maximizing our revenue yield by layering managed services onto our existing infrastructure services and connectivity platform," says Manuel D. Medina, chairman and CEO of Terremark Worldwide. "Adding a family of scalable, proven hosting and infrastructure management products allows us to better address the business continuity and disaster recovery needs of the enterprise and government sectors, and gives us the ability to provide a complete solution to our new and existing customers."
Dedigate's customers include Exostar, Quadrem, Kelkoo, Pfizer, Samsonite and Pioneer. The company generates approximately $7 million in annual revenue.
