IT infrastructure firm Internap has acquired hosting and cloud services provider Voxel for $30 million, the two companies announced this morning.
Internap provides “intelligent IT Infrastructure solutions” for enterprises and uses a variety of solutions to lower IT costs, including Colocation, Enterprise IP and Hybrid Hosting. With Voxel’s inexpensive VoxCLOUD cloud hosting services and data centers all around the world, Internap is picking up extra resources to stake its future on the cloud.
“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 CEO of Internap, in a statement. “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.”
The deal between Internap and Voxel closed on Dec. 30, with an all-cash transaction of about $30 million. Internap has also offered up an “additional potential $5 million in cash tied to the delivery of specific objectives during the next two years.” Translation: if Voxel makes a boatload of cash in the short-term, key investors are getting a nice extra payday.
New York City-based Voxel was founded in 1999 and serves more than 1,000 customers. Voxel’s presence in North America, Europe and Asia will help Atlanta-based Internap with global penetration. Voxel was backed with a $5.5 million round by New York-based Seaport Capital.
Internap’s share price on the Nasdaq exchange is almost unchanged on the news and sits at $5.95 per share.