The previously-announced sale of hosting and cloud provider iWeb Inc to U.S.-based Internap Network Services Corp (NASDAQ: INAP) for US$145 million has been completed. The seller was Novacap Technologies, a private equity fund managed by Longueuil, Québec-based Novacap, which took the Montréal-based iWeb private for $47 million in 2011. The Caisse de dépôt et placement du Québec also participated in the 2011 deal. Novacap said Internap’s acquisition of iWeb will allow both businesses to grow their market shares and service portfolios to offer a complete range of IaaS to companies at every stage, from start-ups to multinationals. Founded in 1996, iWeb currently serves 10,000 SMB customers worldwide.
PRESS RELEASE
Novacap Sells Montreal-based Hosting Provider iWeb to Internap
The transaction has received all necessary regulatory approvals
MONTREAL, November 27, 2013 – Novacap is pleased to announce that the sale of the hosting and cloud provider, iWeb to Atlanta-based IT infrastructure service provider Internap is concluded. Evaluated at $145M, this transaction allows both Internap and iWeb to grow their market shares and their services portfolio to offer a complete range of IaaS to companies at every stage, from start-ups to multinationals.
iWeb’s leading position as an international cloud hosting company combined with proven online sales channel and multi-lingual capabilities enables Internap to provide a broader range of infrastructure capabilities with additional price points and configurations to the global SMB segment.
“We are very happy to conclude the agreement with Internap. This transaction allows iWeb to benefit from access to Internap’s data centers, hybrid IT infrastructure capabilities, automated provisioning and its high-performance network. The Internap-iWeb combination will give iWeb and its employees new strategic opportunities in a very fast-growing market,” declared Christian Primeau, President and Chief Operating Officer at iWeb.
Novacap has been working with entrepreneurs specialized in data centers and cloud computing for over 15 years now. The firm joined forces with iWeb in 2011, “When I founded iWeb in 1996, cloud computing was far from being a reality. Novacap’s commitment and vision enabled us to grow and reach new heights with iWeb. Today the beginning of a new chapter for many of us, and I am very proud of everything our team has achieved,’’ said Eric Chouinard, co-founder of iWeb.
“We acquired iWeb because we saw the potential of the company and of its people. Today, iWeb is an international cloud hosting company serving over 10,000 SMB customers worldwide. iWeb is a perfect example of how Novacap can support a company in its expansion strategy and help it reach the highest standards within its industry,” concluded Stéphane Tremblay, partner at Novacap.
The Bank Street Group LLC served as financial advisor for iWeb.
The transaction received all necessary regulatory approvals, including the approval of the Exchange.
About Novacap
Novacap is one of Canada’s leading private equity firms. Since 1981, its distinct partnership approach based on operational expertise has helped companies accelerate their growth and maximize their value. Novacap ranks among the top private equity firms in North America. For more information, please consult: www.novacap.ca.
About iWeb
iWeb provides the on-demand server and cloud infrastructure that allows over 10,000 customers worldwide to deliver today’s Internet-based technologies and to create tomorrow’s online innovations. Since 1996, Montreal-based iWeb has been rated among the world’s top web infrastructure providers based on performance and reliability and among Canada’s fastest growing companies. For more information, visit http://www.iweb.com.
About Internap
Internap helps people build and manage the world’s best performing IT infrastructure. Our global footprint of data centers, patented network technology and hybrid approach to hosting solutions that blends virtual and bare-metal cloud computing, managed hosting and colocation delivers a seamless end-user experience with the lowest latency every time. With a 100% uptime guarantee and award-winning customer support, Internap has been recognized by Forbes as one of America’s Most Trustworthy Companies. For more information, visit www.internap.com.
SOURCE : NOVACAP
Pascal Tremblay, MBA
President and Managing Partner
450.651.5000
ptremblay@novacap.ca
Photo courtesy of Shutterstock.
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