A screenshot of the control panel for NaviSite's new TestDev cloud solution
(WEB HOST INDUSTRY REVIEW) — Web hosting provider NaviSite (www.navisite.com) announced on Monday it has sold its Dallas colocation business to Cologix Dallas, a subsidiary of Cologix (www.co-logix.com), for $12.75 million in cash.
All NaviSite Dallas colocation customers will be transferred to Cologix as part of the transaction.
Cologix will also assume NaviSite’s lease of the Dallas data center where the services are hosted, managed, and supported.
NaviSite says it will use the proceeds from the sale to repay its debt. It will continue to be a customer and bandwidth service provider in the Cologix facility in Dallas.
“The sale of the Dallas data center strengthens our balance sheet and allows us to continue focusing on our rapidly expanding enterprise cloud business,” says R. Brooks Borcherding, NaviSite’s president and CEO. “We are pleased to remain a customer of Cologix in Dallas and are confident that customers will be well supported by Cologix moving forward.”
The sale is part of NaviSite’s continuing strategic plan to sell off its colocation only data centers and focus on complex hosting, application management, and cloud solutions for enterprise clients.
The company recently launched its TestDev cloud solution which is built on the enterprise-class NaviCloud platform.
The Web host announced in March it is selling off its colocation services in an effort to focus on offering hosting, managed services and cloud computing services.
NaviSite has announced several acquisitions this year, including its Vienna, Virginia and San Francisco data centers, as well as its Lawson / Kronos Application Services business.
The company rejected an unsolicited takeover offer from Atlantic Investors in August.
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