Costa Mesa, California – (The Hosting News) – February 27, 2007 – Web host and audio and video streaming firm, VitalStream Holdings, Inc., has been acquired by Internap, through the recent stockholder approvals necessary to complete the transaction.
The acquisition is hoped to allow Internap to facilitate the accelerated growth of VitalStreamâ€™s global platform, which enables the delivery of rich media and includes streaming audio and video services. The addition of VitalStreamâ€™s content monetization and advertising solutions also enhances Internapâ€™s portfolio of IP and data center services and meets the increasing demands of businesses looking to transform Web-based content and assets into revenue.
James P. DeBlasio, Chief Executive Officer of Internap remarked, “The completion of the transaction to acquire VitalStream marks yet another milestone in our disciplined approach to transform Internap and return value through both strategic and organic initiatives. By replicating the VitalStream platform, we can extend our global reach and acquire new customers, particularly those that need streaming media services. Furthermore, Internap is positioned to offer our existing customers a more robust, integrated solution that no other company can. The addition of VitalStreamâ€™s employees also creates the ideal combination of innovation and technical expertise that strengthens Internapâ€™s hallmark premium customer service. This ultimately allows us to offer the strongest, most comprehensive portfolio for businesses that depend on the Internetâ€” all backed by the best minds in the industry.â€
Based on the preliminary tally of shares voted at a special meeting of Internap stockholders, approximately 99.90% of the shares of Internap common stock present and voting at the special meeting (in person or by proxy) voted in favor of Internapâ€™s issuance to VitalStreamâ€™s stockholders of approximately 12.2 million shares of Internapâ€™s common stock in connection with the transaction. The number of shares that voted to approve the issuance of shares of Internapâ€™s common stock represents approximately 61.42% of the total number of shares of Internap common stock outstanding and entitled to vote as of December 29, 2006, the record date for the special meeting.
In addition, based on the preliminary tally of shares voted at a special meeting of VitalStream stockholders, approximately 99.95% of the shares of VitalStream common stock present and voting at the special meeting (in person or by proxy) voted in favor of VitalStream’s merger with Internap. The number of shares that voted to approve the merger represents approximately 74.58% of the total number of shares of VitalStream common stock outstanding and entitled to vote as of December 29, 2006, the record date for the special meeting.
VitalStream has notified the NASDAQ Global Select Market of the closing of the transaction and expects that no further trading in VitalStream stock will occur and that its shares will no longer be listed. Internap has appointed American Stock Transfer as exchange agent, and, as soon as practicable, will mail a letter of transmittal and instructions to all VitalStream stockholders of record. The letter of transmittal and instructions will contain information on how to surrender stock certificates representing shares of VitalStream common stock in exchange for certificates representing shares of Internap common stock. The exchange will be based upon a ratio of .5132 shares of Internap common stock issued for each share of VitalStream common stock owned, and stockholders will be paid cash in lieu of fractional shares. VitalStreamâ€™s stockholders of record should wait until they receive the letter of transmittal before surrendering their stock certificates. Stockholders who hold shares through a bank or broker will not have to take any action to have their shares converted into Internap shares as such conversions will be handled by the bank or broker.
The acquisition results in Internap holding a market leadership position delivering streaming media content and will facilitate the companyâ€™s ability to generate organic growth via cross-selling opportunities for streaming media and on-line advertising segments to its 3000 enterprise customers. Internap now has approximately 450 employees, including a direct sales team of 135 with experience re-selling CDN and streaming media services.
Internap expects to provide an update on its integration with VitalStream during its year-end and fourth quarter 2006 conference call on March 1st at 5:00 PM EST.
Internap provides intelligent route control solutions in an effort to offer reliability, performance and security to the Internet. The company’s patented and patent-pending technologies address the inherent weaknesses of the Internet, such as latency and packetloss, enabling businesses to take full advantage of the benefits of deploying mission-critical applications such as e-commerce, VoIP, and audio/video across IP networks. Internap currently serves more than 2,200 customers throughout the U.S., Asia, Australia Canada and Europe.
VitalStream, Inc., is a global provider of integrated content delivery services that endeavors to enable businesses to broadcast digital media and communications to worldwide audiences via the Internet. The company provides complete solutions, including video and audio streaming, advertising placement, delivery, reporting and analysis, live event broadcasting, media asset management, integrated web hosting and consulting services, designed to seamlessly integrate with leading streaming media technologies. VitalStream engineered its content delivery network certified for quality delivery in the United States, Europe and Asia. VitalStream’s customer base includes streamers of audio and video content, including Disney and Myspace.com. Notable new customers added during the second quarter of 2006 include Greyhound, the United Nations, Microsoft Prodigy, Buy.com, QuePasa, Home Depot and Gillette.
To learn more about Internap, please visit: www.internap.com.
For more information about Vital Stream, please visit: www.vitalstream.com.