Internap Network Services Corp. (Nasdaq: INAP) has reached a definitive agreement to acquire privately-held netVmg, a supplier of intelligent route control customer premise equipment.
Specific terms of the acquisition were not disclosed, but the consideration paid by Internap of Atlanta will consist of equity only and not cash. The deal is expected to close in late September.
The acquisition of Fremont, CA-based netVmg will extend Internap’s patented and patent-pending intelligent route control technology to the customer’s premise.
Internap’s direct sales force of more than 100 professionals and its indirect distribution channels will market the complete netVmg Flow Control Platform product line.
In addition, Internap says the acquisition of netVmg will further its geographical reach, allowing support of a broader range of enterprise customers throughout North America and internationally.
“This is a significant advancement in the evolution of Internap’s service offerings and how our enterprise customer’s utilize the Internet to conduct business,” said Greg Peters, president and chief executive officer of Internap. “The acquisition will solidify Internap’s leadership role in network and premises based premium connectivity for facilitating businesses’ migration from traditional data networks to the Internet.”
In anticipation of the Internap acquisition of netVmg, a number of new customers have already signed on, including Storage Continuity, RackMy.com, PAJO Tech and Mentor Graphics.
These customers join netVmg’s existing customers, who include Ventures Online, nVIDIA, ProQuest, Charles Schwab, hotjobs, Safeway and collegeboard.com.
“With this acquisition, the edge appliance route control space will have a provider with a proven track record for vision in product development and leadership,” said Dave Abrahamson, vice president of sales and marketing for Internap. “Customers can feel confident their edge route control provider will be with them for both on-going support and as a partner in delivering leading-edge intelligent route control services.”
Internap: www.internap.com
