December 13, 2005 — (WEB HOST INDUSTRY REVIEW) — Internet service and Web hosting provider EarthLink (earthlink.com) announced on Tuesday that it had acquired New Edge Networks (newedgenetworks.com), a provider of virtual private networks and dedicated access, in a cash and stock deal worth $144 million.
Atlanta-based EarthLink says the deal adds a customer base that will generate $120 million in revenue this year. EarthLink and New Edge Networks expect their capabilities in voice, data, protection and security tools, will enable the combined company to target the growing demand for high-speed access and VPN services in the SMB and SOHO spaces.
“New Edge Networks is a tremendous growth platform for EarthLink to compete in the rapidly expanding SME networking market,” says Bill Heys, president of EarthLink’s value and small to medium enterprises business unit. “This acquisition builds upon our existing suite of award-winning services for small businesses and gives New Edge Networks the added resources to strengthen its market position.”
The deal, subject to customary regulatory approval, is expected to close during the first quarter of 2006. EarthLink says it will retain New Edge Networks’ brand and its 345 employees. The company will be run as a wholly-owned subsidiary of EarthLink.
