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8-K - FORM 8-K - NAVISITE INC | b83877e8vk.htm |
Exhibit 99.1
Contact:
Jim Pluntze
978-946-8611
jpluntze@navisite.com
978-946-8611
jpluntze@navisite.com
NaviSite Announces Sale of Dallas Colocation Business for $12.75 million
Andover, MA, December 20, 2010 NaviSite, Inc. (NASDAQ: NAVI), a premier provider of
enterprise-class hosting, managed application, managed messaging and managed cloud
services, today announced the sale of its Dallas, Texas colocation business to Cologix Dallas,
Inc., a subsidiary of Cologix, Inc., 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
NaviSites lease of the Dallas data center where the services are hosted, managed, and supported.
The transaction is effective immediately. Net proceeds from the sale will be used to repay debt.
NaviSite will remain a customer and bandwidth service provider in the Cologix facility in Dallas.
The sale is part of NaviSites continuing strategic plan to divest its colocation only data centers
and focus on complex hosting, application management, and cloud solutions for enterprise clients.
The sale of the Dallas data center strengthens our balance sheet and allows us to continue
focusing on our rapidly expanding enterprise cloud business said R. Brooks Borcherding, NaviSites
President and Chief Executive Officer. We are pleased to remain a customer of Cologix in Dallas
and are confident that customers will be well supported by Cologix moving forward.
About NaviSite
NaviSite, Inc. (NASDAQ: NAVI) is a leading worldwide provider of enterprise-class,
cloud-enabled hosting, managed applications and services. NaviSite provides a full suite of
reliable and scalable managed services, including Application Services, industry-leading
Enterprise Hosting, and Managed Cloud Services for enterprises looking to outsource IT
infrastructure and lower their capital and operational costs. Enterprise customers depend on
NaviSite for customized solutions, delivered through a global footprint of state-of-the-art data
centers. For more information about NaviSites services, please visit www.navisite.com.
About Cologix
400 Minuteman Road, Andover, MA 01810, P. 978-682-8300, F. 978-688-8100 | www.navisite.com |
Cologix, Inc. is a privately held colocation company headquartered in Denver, Colorado. The company
offers access to reliable and secure data centers to support its customers mission critical
applications. Cologix is funded by a leading group of private equity, management and debt sponsors.
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This release contains forward-looking statements that address a variety of subjects, including
NaviSites expected future operating and financial results, such as profitability, revenue growth
and EBITDA, the success and performance of our product and service offerings and our strategic
business plans for growing our customer base. All statements other than statements of historical
fact including, without limitation, those with respect to our goals, plans and strategies set
forth herein are forward-looking statements. The following important factors and uncertainties,
along with general economic conditions, changes in economic conditions and others, could cause
actual results to differ materially from those described in these forward-looking statements. Our
success including our ability to improve our gross profit, to improve our cash flows, to expand
our operations and revenue and to reach and sustain profitability depends in part on our ability
to execute on our business strategy and the continued and increased demand for, and market
acceptance of, our products and services. We may not remain compliant with our agreement with our
senior secured lenders, including financial covenants. Our financial forecasts may not be
achieved, including those as to expected EBITDA and revenue. We may be unable to raise the
necessary funds to meet our payment obligations to our lending group under our senior secured
credit facility and other creditors. We may not be able to expand our operations in accordance
with our business strategy. We may experience difficulties integrating technologies, operations
and personnel in accordance with our business strategy. Our products, technologies and resources
may not successfully operate with the technology, resources and applications of third parties. We
derive a significant portion of our revenue from a small number of customers, and the loss of any
of those customers could significantly damage our financial condition and results of operations.
Competition has increased, and technological changes made, in the markets in which we compete. For
a detailed discussion of cautionary statements that may affect our future results of operations and
financial results,
400 Minuteman Road, Andover, MA 01810, P. 978-682-8300, F. 978-688-8100 | www.navisite.com |
please refer to our filings with the Securities and Exchange Commission, including our most recent
annual report on Form 10-K and our quarterly reports on Form 10-Q. Forward-looking statements
represent our current expectations and are inherently uncertain. We do not undertake any
obligation to update forward-looking statements that we make. All logos, company and product names
may be trademarks or registered trademarks of their respective owners.
400 Minuteman Road, Andover, MA 01810, P. 978-682-8300, F. 978-688-8100 | www.navisite.com |