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March 7, 2002 — (WEB HOST INDUSTRY REVIEW) — ViaWest Internet Services, Inc. (viawest.net), a regional
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provider of hosting, Internet infrastructure and access to businesses,
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announced today it has reached an agreement to acquire the physical and
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customer assets of Verado Holdings Inc.’s (verado.com)
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23,850 square foot Englewood Data Center.
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This announcement follows Verado’s Feb. 15 filing for Chapter 11 bankruptcy
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protection, in which the company stated it had sold its Irvine, California
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data center, and was looking to sell its Denver data center as a going
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concern. The agreement is subject to bankruptcy court approval pursuant to a
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section 363 motion filed by Verado on March 1, 2002 in the US Bankruptcy
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Court in the District of Delaware.
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ViaWest has agreed to purchase the data center assets in a deal that
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provides ViaWest with a Class A south Denver co-location facility that has
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been operational since 1999. As part of the purchase agreement, Verado has
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agreed to operate the data center through March. ViaWest anticipates taking
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over operations as of April 1, 2002, pending bankruptcy court approval of
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the agreement.
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“Verado’s bankruptcy filing presented us with an opportunity to increase our
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market presence with a high caliber facility in a prime location,” said Roy
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Dimoff, CEO of ViaWest. “It also provided us with additional data center
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capacity for a fraction of what it would cost to build it ourselves.”
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ViaWest plans to use its new data center as an adjunct to its existing
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downtown Denver data center that is currently at 90% capacity. ViaWest
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estimates the Verado purchase will curb the company’s immediate need for an
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expansion at its downtown location, and provide it with enough space to meet
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its needs for the next eight to twelve months.
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“It’s a testament to ViaWest’s success that we were in the financial
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position to make this purchase,” said Dimoff. “Few, if any, suppliers in
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this market are currently looking for additional space – most are looking to
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reduce their current square footage.”
