ViaWest to Acquire Verado's Denver Data Center

• By theWHIR.com , March 07, 2002

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March 7, 2002 -- (WEB HOST INDUSTRY REVIEW) -- ViaWest Internet Services, Inc. (viawest.net), a regional

provider of hosting, Internet infrastructure and access to businesses,

announced today it has reached an agreement to acquire the physical and

customer assets of Verado Holdings Inc.'s (verado.com)

23,850 square foot Englewood Data Center.

This announcement follows Verado's Feb. 15 filing for Chapter 11 bankruptcy

protection, in which the company stated it had sold its Irvine, California

data center, and was looking to sell its Denver data center as a going

concern. The agreement is subject to bankruptcy court approval pursuant to a

section 363 motion filed by Verado on March 1, 2002 in the US Bankruptcy

Court in the District of Delaware.

ViaWest has agreed to purchase the data center assets in a deal that

provides ViaWest with a Class A south Denver co-location facility that has

been operational since 1999. As part of the purchase agreement, Verado has

agreed to operate the data center through March. ViaWest anticipates taking

over operations as of April 1, 2002, pending bankruptcy court approval of

the agreement.

"Verado's bankruptcy filing presented us with an opportunity to increase our

market presence with a high caliber facility in a prime location," said Roy

Dimoff, CEO of ViaWest. "It also provided us with additional data center

capacity for a fraction of what it would cost to build it ourselves."

ViaWest plans to use its new data center as an adjunct to its existing

downtown Denver data center that is currently at 90% capacity. ViaWest

estimates the Verado purchase will curb the company's immediate need for an

expansion at its downtown location, and provide it with enough space to meet

its needs for the next eight to twelve months.

"It's a testament to ViaWest's success that we were in the financial

position to make this purchase," said Dimoff. "Few, if any, suppliers in

this market are currently looking for additional space - most are looking to

reduce their current square footage."

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