VitalStream being acquired by Internap

Posted on October 13, 2006 | Comments Off

You can find the news release here.

The deal is worth about $217 million and is to happen by first quarter 2007. Here is the main quote from the CEO of VitalStream:

“Internap’s acquisition of VitalStream is a business combination that creates a scalable public company with complementary product lines and accelerated growth potential. We believe that this is an exciting value proposition for our customers including unparalleled distribution, network quality and customized solutions, as well as aunique alternative for investors.” said Jack Waterman, chairman and chief executive officer of VitalStream. “The new Internap will offer turnkey digital media broadcasting solutions for web users of all sizes. By uniting our two organizations, customers will have a complete solution to realize the full on-line potential of their digital assets.”

First of all this is very interesting because I have been following Internap for years now. Back when it was a penny stock and not so profitable. I liked Internap’s IP and what they were doing at the time as it was something I thought should be offered to more business at a cheaper price. But custom high quality routing of internet traffic is not that cheap I guess.

Internap has grown quite well over the years and with this move they are moving into more of the mainstream then just Enterprise clients. Internap can definetly help VitalStreams services in terms of latency and routing, but I can’t remember how much CDN type services Internap has.

Its interesting to see the one of Internap’s clients is Adobe it self. They have a very impressive list of clients to say the least.