Wednesday, October 11, 2006

Internap to Acquire VitalStream for Content Delivery Services

Internap Network Services Corporation, which provides performance-based routing over the Internet, agreed to acquire VitalStream Holdings, a provider of audio and video streaming services. The stock-for-stock transaction is valued at an aggregate purchase price of approximately $217 million.

Internap said the acquisition would enhance its ability to access the high-growth streaming media and on-line advertising segments. The combination of VitalStream's content delivery services, content management tools and particular expertise in Adobe (formerly Macromedia) Flash technology, with Internap's high performance route management network, will enable the new organization to address the needs of enterprises seeking to deliver large format media files in a streamed environment.

The combined company will have more than 450 employees and over 3,000 enterprise customers.