Sprint Edges Closer to Sale of Hosting Business

• By theWHIR.com , October 08, 2003

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October 8, 2003 -- (WEB HOST INDUSTRY REVIEW) -- Sprint (sprint.com) is close to selling a portion of its Web hosting business to Houston, Texas-based VeriCenter, Inc. (vericenter.com), according to a report published Monday by the Business Journal of Kansas City.

Sources told the Journal that VeriCenter plans to take over Sprint?s Internet data center (IDC) facilities in Atlanta, Boston, Dallas and Denver, according to the deal currently being negotiated.

The deal is reported to be valued at $12.5 million, according to the Journal.

John Polivka, spokesperson for Sprint, said an announcement regarding what Sprint intends to do with its Web hosting division will be made in the next two weeks, the Journal reported.

Sprint announced in June that it was exiting the Web hosting market.

Sprint's Web hosting business, operating out of eight data center facilities across the United States, has consistently incurred heavy losses, losing 10 cents a share on revenue of about $60 million over a 12-month period.

VeriCenter currently provides managed services and hosting for data and applications from its single IDC facility in Houston.

Analysts quoted in the Journal report speculated that VeriCenter is interested in expanding its customer base beyond the local market.

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