Internap Acquires Voxel

By Meenakshi Shankar
TMCnet Contributor

Internap (News - Alert) Network Services Corporation, a company specializing in IT Infrastructure services, recently acquired enterprise hosting and cloud services provider Voxel (News - Alert).

Headquartered in New York City, with a global presence extending into North America, Europe and Asia, Voxel serves more than 1,000 customers and has approximately 50 employees. Internap’s agreement to acquire Voxel, as indicated, was signed in an all cash transaction valued at approximately $30 million, plus an additional potential $5 million in cash tied to the delivery of specific objectives during the next two years. The transaction was closed on Friday, December 30, 2011.

“As IT Infrastructure outsourcing advances, enterprises increasingly seek service providers to support myriad applications and workloads throughout their entire IT lifecycle,” said Eric Cooney (News - Alert), president and chief executive officer of Internap in a press release.

“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,” Cooney added.

Internap is of the opinion that it can significantly enhance its IT Infrastructure platform with the addition of Voxel’s dedicated hosting and cloud products. Also, the company believes Voxel’s offerings as highly complementary to its existing portfolio. It provides a level of automation and self-service that will be available immediately to Internap’s customer base.

Voxel also extends Internap’s addressable market, enabling the company to serve early- to mid-stage IT Infrastructure customers seeking dedicated hosting services, a high-growth market currently estimated by Tier1 Research to reach approximately $3 billion in 2012.

“We are excited to be joining Internap, a company that shares our commitment to developing innovative IT Infrastructure solutions to drive the next generation of Internet and cloud applications,” Raul K. Martynek, president and chief executive officer of Voxel said in a statement.

“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,” Martynek added.

By adding Voxel’s service locations in Amsterdam and Singapore to Internap’s existing service locations, the combined company is believed to offer a truly global platform of colocation, managed hosting, dedicated hosting and cloud services. Company statement also emphasized that Voxel’s automation technologies and expertise will also be leveraged to enhance the existing Internap product set.

In related news, Internap unveiled its new 55,000-square-foot data center in the Dallas/Fort Worth market to provide maximum flexibility and performance for customers.

Meenakshi Shankar is a TMCnet contributor. To read more of her articles, please visit her columnist page.

Edited by Jennifer Russell