Miami, Florida – (via THE
HOSTING NEWS) – August 8, 2005 – Terremark Worldwide, Inc., a leading operator
of integrated Tier-1 Internet Exchanges and best-in-class network services,
announced today the acquisition of Dedigate N.V. (Dedigate), a privately held
European managed dedicated hosting provider. Terremark acquired all of the outstanding
stock of Dedigate in exchange for 1.6 million shares of Terremark’s common stock.
Dedigate’s existing annual recurring revenue is approximately $7 million, with
projected revenues over the next twelve months to exceed $10 million and it
is expected to be accretive for Terremark’s fiscal year ending March 31, 2006.
Dedigate provides managed dedicated, secure hosting services to enterprise customers,
e-commerce marketplaces, system integrators, ASP’s and web designers using proprietary
technology to remain automated and scalable across geographically remote locations.
The Dedigate solution allows for the rapid integration and deployment of their
products in each of Terremark’s Internet exchanges around the world.
According to the Gartner Group, 48% of the Fortune 1000 companies look to managed
hosting providers when externally hosting their websites. Dedigate’s comprehensive
and proven product portfolio accelerates Terremark’s penetration in the enterprise
sector. Its European presence is highly complementary to Terremark’s strategic
growth plans and provides the market with a geographic offering combining the
U.S., Europe and Latin America.
Manuel D. Medina, Chairman and CEO of Terremark Worldwide explained the acquisition,
”We have been examining acquisitions that are accretive both on the basis of
revenue and technology. Acquiring Dedigate is consistent with our strategy of
maximizing our revenue yield by layering managed services onto our existing
infrastructure services and connectivity platform. Adding a family of scalable,
proven hosting and infrastructure management products allows us to better address
the business continuity and disaster recovery needs of the enterprise and government
sectors, and gives us the ability to provide a complete solution to our new
and existing customers.”
Since its founding in early 2000, Dedigate has become a provider of sophisticated
managed hosting solutions for U.S. and European enterprises, delivering its
solutions out of six data centers in Europe. Due to its automated approach of
service delivery, Dedigate is able to remotely manage the mission-critical infrastructures
of its customers from any physical location around the world. Their Network
Operations Center (NOC) is located in Ghent, Belgium.
”Dedigate’s technological expertise, automated systems and deep understanding
of the dedicated hosting business has allowed it to successfully compete head
to head with large global players for a share of the European enterprise hosting
market,” said Herman Oggel, Chairman and CEO of Dedigate. ”We believe that
by uniting our services with Terremark’s Internet exchanges in Europe, the U.S.
and Latin America, we will create a powerful combination that will change the
competitive dynamic of this business.”
Over 70 U.S., European and Asian enterprises are customers of Dedigate, including
Exostar, Quadrem, Kelkoo, Pfizer, Samsonite and Pioneer.
For more details please visit: http://www.terremark.com.