NaviSite CEO Arthur Becker said that the two companies fit neatly into the company's managed hosting offerings and will add a lucrative network to its 1,000-strong customer base.
“These transactions add new customers with average revenue-per-square-foot densities of approximately $4,700 per year and create significant opportunities to up-sell and cross-sell our entire suite of managed services,” Becker said.
NaviSite Chief Marketing Officer Rathin Sinha told XBIZ that the company's goal is to expand both organically and through acquisitions, and buying the two companies made sense for NaviSite's growth plan.
"We have a highly disciplined strategy for assessing acquisition opportunities and Jupiter Hosting met our criteria with respect to technology fit and financial benefit," Sinha said.
Sinha also said that Jupiter Hosting's adult market focus was not a particular consideration in the deal, but acknowledged that NaviSite will better serve adult because of the industry's need for a technology solutions provider that can support high bandwidth and performance needs.
In a letter sent to current Jupiter Hosting customers, NaviSite stated there will be no immediate changes to current service but the company will remain in contact over the next few months "regarding details on how we will work together."
The company said it would maintain Jupiter's hosting and software development capabilities, but improve them by offering more technical services, such as application management, application development expertise and Web 2.0 tools.
Jupiter Hosting provides service for numerous adult sites, including adult industry forum GFY.com.
