Internap to Acquire iWeb for $145M, to Boost IaaS Play

Colocation and data center provider Internap Network Services plans to acquire hosting and cloud provider iWeb in a deal valued at approximately $145 million. The acquisition creates a top five pure-play IT infrastructure services provider, with trailing twelve months revenue in excess of $320 million.

Headquartered in Montreal, Canada, iWeb serves 10,000 SMB customers in more than 100 countries and has approximately 200 employees. Its go-to-market strategy combines an online sales channel, inbound digital marketing and multi-lingual (English, French and Spanish) sales, marketing and customer support.

“iWeb fits perfectly into our strategy to deliver a comprehensive portfolio that can serve the needs of our customers at every stage of their business lifecycle, from an initial start-up wanting a single dedicated server to a scale-out Internet app provider or global enterprise requiring a hybrid solution across multiple data centers around the world,” said Eric Cooney, president and CEO of Internap. “This combination represents a milestone in the transformation of Internap’s business to a leading IT infrastructure services provider that can deliver on customers’ complete range of IaaS [infrastructure as a service] demands.”

iWeb’s dedicated and cloud hosting offerings and the added scale it delivers complement Internap’s existing portfolio of bare-metal and virtual cloud, managed hosting and colocation services while significantly expanding Internap’s addressable market.

iWeb,” said Carl Brooks, analyst for infrastructure services at 451 Research. “Second, demand from enterprise is for a broad range of infrastructure capabilities from multitenant public cloud to bare-metal servers and managed services that increasingly display key aspects of IaaS, like self-service, automation and on-demand consumption. Providers that offer this can have an advantage in meeting diverse workloads and growing demand for agility from end users.”

iWeb builds on Internap’s acquisition of cloud provider Voxel in December 2011. The integration of Voxel’s product offering resulted in the availability of Internap’s high-performance AgileCLOUD virtual cloud and AgileSERVER bare-metal cloud services across five data centers worldwide.

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