Hostway buys NetNation in $10 Million Deal
Chicago—June 13, 2003—Hostway announced today that it has entered into an agreement and plan of merger with NetNation Communications, Inc. (NASDAQ: NNCI), in which Hostway seeks to acquire all of NetNation's outstanding shares for cash. In return for all outstanding shares, NetNation's shareholders will collectively receive approximately $10 million in cash.
"NetNation is a solid Web hosting company with a proven track record with clients worldwide," said Lucas Roh, CEO of Hostway. "The combination of our two complementary organizations has the clear strategic benefits of increased scale and new growth opportunities. In addition, this decisive move represents another milestone in our global expansion strategy. NetNation's Vancouver operation will serve as our sixth international Web hosting Center."
"We are very pleased to enter into this merger agreement with Hostway, an organization recognized for its commitment to customer service, and quality products and services," said David Talmor, President and Chairman of NetNation. "The proposed merger provides Hostway and NetNation customers with truly global reach in six centers around the world, and the combined strengths of both companies will benefit our customers through service innovations and even better customer service."
According to Josh Beil of Tier 1 research, the deal will solidify Hostway's position as one of the five largest Web hosting companies in the world.
In recent months, Hostway has been using its position of strength to make aggressive moves in the Web hosting market. In May, 2003, Hostway revamped its domain name registration service by combining a generous set of features with the lowest price. As a result, Hostway has become one of the fastest growing domain name registrars. In the dedicated server hosting space, Hostway is also showing rapid growth with the launch of its TruFlex managed dedicated server hosting line in May.
Hostway's recent moves suggest that for companies that are built on sound business fundamentals such as financial stability and focus on superior customer experience can thrive even in today's tough economic conditions.
About Hostway Corporation
Hostway Corporation is a leader in Cloud, Managed, and Managed Hosting. Hostway delivers reliable, secure, and scalable Infrastructure-as-a-service (IaaS) solutions to over 600,000 customers worldwide. Hostway services its clients from more than 250,000 square feet of state-of-the-art data center space, spanning four continents and 12 countries. Hostway has emerged as one of the largest cloud hosting and Infrastructure-as-a-Service providers in the world due to the company’s expertise in developing secure, multi-tenant hosting environments and is committed to providing SMB's and large enterprises with cost effective business solutions. Hostway’s core products include Managed Hosting, Cloud Hosting, and Email and Applications.
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