Internap announced the acquisition on its website
(WEB HOST INDUSTRY REVIEW) — Colocation and hosting provider Internap announced on Tuesday that it has acquired web host Voxel Holdings in an all cash transaction valued at $30 million. According to the press release, the transaction closed on Friday, December 30, 2011, and has a potential $5 million in cash based on the delivery of specific objectives during the next two years.
This acquisition comes less than a month after Internap opened a 55,000 square foot data center in Plano, Texas.
Voxel serves more than 1,000 customers in North America, Europe and Asia, and has approximately 50 employees. Internap says its offerings are complementary to its portfolio, providing dedicated hosting and cloud products. Its automation technologies will be used to enhance Internap’s product set, according to the press release.
“As IT Infrastructure outsourcing advances, enterprises increasingly seek service providers to support myriad applications and workloads throughout their entire IT lifecycle, Eric Cooney, president and chief executive officer of Internap said in a statement. “This acquisition of Voxel increases Internap’s market share and growth rate, accelerates our product roadmap and creates an unmatched competitive position as an IT infrastructure services provider.”
Based in New York City, Voxel was founded in 1999, and has a strong background in software development. It uses modular components and intelligent automation to address the complexities of dedicated and cloud environments. Its customers can integrate physical servers and cloud instances in the same environment.
“Internap has made hosting and cloud infrastructure a top strategic priority in the last few years but it has grown the business only modestly. Picking up Voxel is designed to kickstart those efforts and provide some immediate scale, scope and brand recognition,” Philbert Shih, managing director of Structure Research said in an email to the WHIR. “From this perspective, the deal makes a great deal of sense for Internap. But the jewel of this deal may be the platform. Voxel brings a unified infrastructure service delivery platform that will help Internap drive into hosting and cloud efficiently and profitably. This will contribute significantly to Internap’s twin goals of driving higher margins beyond colocation and IP services and presenting customers with a complete portfolio of infrastructure services.”
With the acquisition, Internap will add Voxel’s service locations in Amsterdam and Singapore to its existing service locations. Singapore and Amsterdam saw tremendous growth in 2011, with several data centers and headquarters, including SoftLayer’s European headquarters in Amsterdam, established in the respective cities.
“We are excited to be joining Internap, a company that shares our commitment to developing innovative IT Infrastructure solutions to drive the next generation of Internet and cloud applications,” Raul K. Martynek, president and chief executive officer of Voxel said in a statement. “The combination of Internap’s broad market presence and robust, high-performance IT Infrastructure platform with our expertise in automated hosting and cloud services will deliver a powerful option for a broad range of enterprise customers.”
About Nicole Henderson
Nicole Henderson writes full-time for the Web Host Industry Review where she covers daily news and features online, as well as in print. She has a bachelor of journalism from Ryerson University in Toronto, and has been writing for the WHIR since September 2010. You can find her on Twitter @NicoleHenderson.
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