November 4, 2002 -- (WEB HOST INDUSTRY REVIEW) -- Digital broadcasting solution provider VitalStream Holdings (VitalStream.com) announced on Monday that it has secured a $1.1 million investment, and has entered into an agreement to acquire certain assets of Epoch Networks Inc. and Epoch Hosting Inc.
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The investment from Dolphin Equity Partners comes through the sale of convertible notes and warrants to purchase common stock of VitalStream. The company says that Dolphin Equity Partners principal Salvatore Tirabassi is expected to join VitalStream?s board of directors.
Dolphin has agreed to invest over $1.1 million dollars through the purchase of three-year convertible promissory notes. The notes will bear interest of 10 percent yearly, and will be convertible into 13.2 percent of the company?s outstanding shares following the issuing of shares to Epoch Holdings in connection with the acquisition.
The acquisition, part of VitalStream?s plan to expand its CDN customer base, involves the acquisition of Epoch?s interest in a Telco-grade data center in Los Angeles, as well as over 1,000 customers.
VitalStream says it has been seeking data center resources in the Los Angeles media corridor in order to expand its growing CDN. The acquired facility, to be renamed the VitalStream Broadcasting Center, will provide the company?s customers with a telco-grade data center in the heart of Los Angeles.
"The addition of this new facility to VitalStream's CDN is part of our ongoing commitment to provide our customers with a high-performance, scalable network architecture that will deliver their media with optimum quality and efficiency," says Paul Summers, VitalStream's chief executive officer.
