NaviSite just announced the acquisition of two privately held Web hosting providers, Alabanza and Jupiter Hosting for total cash consideration of approximately $15.5 million

Aug. 13, 2007 - (TopHosts News Brief) - NaviSite, Inc. (NASDAQ: NAVI) announced today the acquisition of two Web hosting providers, Alabanza and Jupiter Hosting. NaviSite acquired the two privately held companies for total cash consideration of approximately $15.5 million.

Alabanza, based in Baltimore, MD, features a comprehensive suite of dedicated and shared Web hosting services. Jupiter Hosting, based in Santa Clara, CA, provides dedicated and complex managed hosting and infrastructure services.

“Alabanza and Jupiter fit neatly into our managed hosting offerings and were acquired at less than four times expected synergistic EBITDA,” Arthur Becker, Chief Executive Officer of NaviSite, said in a company press release. “These transactions add new customers with average revenue per square foot densities of approximately $4,700 per year and create significant opportunities to up-sell and cross-sell our entire suite of managed services.”

The acquisitions were financed predominately through cash on hand. The acquisitions are expected to be accretive to adjusted EBITDA immediately and fully integrated by NaviSite’s second quarter. The company plans to update fiscal 2008 guidance for these acquisitions in its next quarterly earnings call tentatively scheduled for the end of September, 2007.

For more information, please visit www.navisite.com, www.alabanza.com or www.jupiterhosting.com.