September 13, 2007 — (WEB HOST INDUSTRY REVIEW) — Managed hosting provider NaviSite (navisite.com) announced on Thursday it will acquire privately-owned applications management service provider netASPx for $40.5 million.
The deal, which was expected to close by the end of Wednesday, includes approximately $15.5 million in cash and $25 million in convertible preferred stock, says the company.
NaviSite says the acquisition of the Herndon, Virginia-based company broadens its existing portfolio of applications management expertise, expands its customer base and strengthens its presence in the Midwest.
The acquisition was financed through a $20 million addition to NaviSite’s current senior term facility and the issuance of $25 million of series A convertible preferred stock, says the company. NaviSite shares increased by 25 cents, or 3.6 percent, to $7.30 yesterday morning.
Last month, NaviSite announced it acquired Web hosting providers Alabanza and Jupiter Hosting for approximately $15.5 million.
