February 11, 2002 — (WEB HOST INDUSTRY REVIEW) — Interland, Inc. (interland.com) today announced that sixinstitutional investors, together with the company and four of itsdirectors, purchased all of the approximately 58.6 million shares ofInterland stock previously held by the Micron Technology Foundation. Thesale marks the final step in the transformation of the company from amanufacturer of personal computers spun off from chip giant MicronTechnology Inc. (micron.com) into a widely held public company providing Web hosting services to small and medium-sized businesses.
Micron Technology, through a subsidiary, had donated its Interland stock tothe Foundation six months ago, and some observers expected the foundation tobegin liquidating its holdings to fund its charitable mandate as soon as itslockup period expired in May.
The purchasers, regarded as long-term investors, are PAR Capital Management,Blum Capital, Tudor Investments Corporation, Kahn Capital, and VardonCapital, or funds managed by them, as well as a large Boston-basedinstitutional investor on behalf of its client. Interland repurchased about5.8 million shares, or approximately ten percent of the foundation’s block,and four directors, including chairman and CEO Joel Kocher, in the aggregatebought 1.3 million shares, or approximately two percent of the foundation’sshares.
The purchasers agreed to abide by the foundation’s lockup period and tolimit resales thereafter through the end of this calendar year, even if theshares are registered with the SEC.
