Internap Acquires Enterprise Cloud Services Provider Voxel
Voxel provides on-demand dedicated hosting and cloud services to enterprises and web-centric businesses. Its dedicated hosting offering provides customers with a robust online interface and comprehensive API that enables them to provision and activate services in minutes, gaining cloud-like flexibility from dedicated physical servers.
The transaction, an all-cash transaction valued at approximately $30 million plus an additional potential $5 million in cash tied to the delivery of specific objectives during the next two years, was closed on Friday, December 30, 2011.
The combination significantly enhances Internap's flexible IT Infrastructure platform with the addition of Voxel's dedicated hosting and cloud products.
"Voxel's offerings are highly complementary to Internap's existing portfolio and provide a level of automation and self-service that will be available immediately to Internap's customer base," said Internap.
According to Internap, Voxel also extends Internap's addressable market, enabling the company to serve early- to mid-stage IT Infrastructure customers seeking dedicated hosting services, a high-growth market currently estimated by Tier1 Research to reach approximately $3 billion in 2012.
"As IT Infrastructure outsourcing advances, enterprises increasingly seek service providers to support myriad applications and workloads throughout their entire IT lifecycle," said Eric Cooney, president and chief executive officer of Internap. "This acquisition of Voxel increases Internap's market share and growth rate, accelerates our product roadmap and creates an unmatched competitive position as an IT Infrastructure services provider."
By adding Voxel's service locations in Amsterdam and Singapore to Internap's existing service locations, the combined company will offer a global platform of colocation, managed hosting, dedicated hosting and cloud services.