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Web Hosting Provider Dedigate Bought Up by Terremark |
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August 10, 2005 - (HOSTSEARCH.COM) - Web hosting provider Dedigate N.V. has been acquired by Terremark Worldwide.
Terremark acquired all of the outstanding stock of Dedigate in exchange for 1.6 million shares of Terremark's common stock. Dedigate's existing annual recurring revenue is approximately $7 million, with projected revenues over the next twelve months to exceed $10 million and it is expected to be accretive for Terremark's fiscal year ending March 31, 2006.
Dedigate provides managed dedicated, secure hosting services to enterprise customers, e-commerce marketplaces, system integrators, ASP's and web designers using proprietary technology to remain automated and scalable across geographically remote locations. The Dedigate solution allows for the rapid integration and deployment of their products in each of Terremark's Internet exchanges around the world.
According to the Gartner Group, 48% of the Fortune 1000 companies look to managed hosting providers when externally hosting their websites. Dedigate's comprehensive and proven product portfolio accelerates Terremark's penetration in the enterprise sector. Its European presence is highly complementary to Terremark's strategic growth plans and provides the market with a geographic offering combining the U.S., Europe and Latin America.
"We have been examining acquisitions that are accretive both on the basis of revenue and technology. Acquiring Dedigate is consistent with our strategy of maximizing our revenue yield by layering managed services onto our existing infrastructure services and connectivity platform," said Manuel D. Medina, Chairman and CEO of Terremark Worldwide. "Adding a family of scalable, proven hosting and infrastructure management products allows us to better address the business continuity and disaster recovery needs of the enterprise and government sectors, and gives us the ability to provide a complete solution to our new and existing customers."
Since its founding in early 2000, Dedigate has become a provider of sophisticated managed hosting solutions for U.S. and European enterprises, delivering its solutions out of six data centers in Europe. Due to its automated approach of service delivery, Dedigate is able to remotely manage the mission-critical infrastructures of its customers from any physical location around the world. Their Network Operations Center (NOC) is located in Ghent, Belgium.
"Dedigate's technological expertise, automated systems and deep understanding of the dedicated hosting business has allowed it to successfully compete head to head with large global players for a share of the European enterprise hosting market," said Herman Oggel, Chairman and CEO of Dedigate. "We believe that by uniting our services with Terremark's Internet exchanges in Europe, the U.S. and Latin America, we will create a powerful combination that will change the competitive dynamic of this business."
Over 70 U.S., European and Asian enterprises are customers of Dedigate, including Exostar, Quadrem, Kelkoo, Pfizer, Samsonite and Pioneer. |
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