(WEB HOST INDUSTRY REVIEW) — Managed hosting provider NaviSite (www.navisite.com) announced on Monday it has sold its Lawson / Kronos Application Services business to Velocity Technology Solutions (www.velocityus.com) for $56 million in cash.
The acquisition makes Velocity the largest provider and clear market leader for Lawson-hosted solutions in North America, according to the press release.
The announcement comes after NaviSite revealed last month its plans to sell its colocation business and some of the data centers supporting that division.
As part of the transaction, all current NaviSite Lawson / Kronos customers will be transferred to Velocity.
Velocity will also assume NaviSite’s lease of the Minneapolis data center where the services are hosted, managed, and supported.
“The sale of our Lawson / Kronos business is consistent with our strategy to focus on providing Enterprise-class cloud computing for large organizations with highly complex environments,” says Arthur Becker, CEO of NaviSite. “Our goal has always been to provide the highest level of service, superior application expertise, and unparalleled technology to our customers. By divesting our Lawson / Kronos practice, we will be better able to focus on our core enterprise applications business and accelerate the progress of our NaviCloud suite of solutions.”
Becker says the proceeds from the sale will go towards reducing NaviSite’s debt and will provide the company with “more balance sheet flexibility in the future.”
The acquisition of the Lawson / Kronos Application Services business brings to Velocity a talented group of professionals, innovative solutions, and advanced cloud-based technologies for the enterprise software market, says Tom Bruno, president and CEO of Velocity.
Velocity provides enterprise customers with hosting services and managed services, including hardware services, operating systems and database services, backup and tape rentention, continuity and disaster recovery.
No related posts.
