(WEB HOST INDUSTRY REVIEW) — Data center operator NaviSite (www.navisite.com) recently revealed that its plans to sell its colocation business and some of the data centers supporting that division are progressing, according to a report by Data Center Knowledge.
In a December 10th conference call with investors, NaviSite president and CEO Arthur Becker provided this update:
“This process is progressing and we are currently negotiating the documentation for the sale of certain of these data center assets and the customers within those data centers. We anticipate that we will close one or more of these transactions before the end of this fiscal second quarter.”
Last June, NaviSite turned to the Bank Street Group for help in seeking potential buyers for its colocation unit as part of a strategic plan to address its NASDAQ compliance challenges.
The company’s shift in strategy that aimed to focus on its enterprise managed hosting clientele helped NaviSite close 2009 with an annual gain of 400 percent, which helped NaviSite meet NASDAQ’s minimum market capitalization.
However, the company said it would concentrate on developing its higher-margin enterprise application hosting and cloud platform, and use the revenues from the asset sale to de-leverage its finances.
In an effort to sell off its colocation division, NaviSite decided not to renew the lease on its Los Angeles data center at the Garland Building, which housed colocation customers.
