Internap spends $30 million on Voxel

Jennifer Scott News
3 Jan, 2012

The infrastructure provider boosts its cloud portfolio with the acquisition of the hosting company.

Internap today confirmed it was buying Voxel Holdings for $30 million (£19 million) in cash.

The deal closed on 30 December 2011, but both companies kept quiet about it over the holiday season.

Internap focuses on the network providing cloud computing solutions, through services such as its Content Delivery Network (CDN). Voxel, however, is a hosting company, offering the cloud services at the end of the line.  

The companies claim the tie-up will provide new automation capabilities to users, as well as self-service solutions. Internap is also betting on Voxel extending its “addressable market,” with the New York-based firm already having over 1,000 clients.

“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 chief executive (CEO) of Internap.

“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.”

Along with the initial payout, a further $5 million could go to Voxel if it sticks to targets laid out by its new parent company over the next two years.

Raul K. Martynek, president and CEO of Voxel, added: “The combination of Internap’s broad market presence and robust, high-performance IT Infrastructure platform with our expertise in automated hosting and cloud services will deliver a powerful option for a broad range of enterprise customers.”

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