NaviSite Continues Acquisition Spree

Managed hosting provider NaviSite, Inc. (NAVI) said Wednesday that it paid $40.5 million to acquire app hosting company netASPx, including its 18,000 square foot data center in Minneapolis. NaviSite will pay $15.5 million in cash and $25.0 million in Convertible Preferred Stock. netASPx of Herndon, Va. specializes in applications management services for Lawson Enterprise Resource Planning (ERP) and Kronos Workforce Management and Business Intelligence Applications.

The netASPx deal comes just a month after NaviSite acquired Alabanza and Jupiter Hosting for a combined $15.5 million. Baltimore-based Alabanza offers reseller hosting atop its proprietary automation platform, while Jupiter focuses on advanced hosting for bandwidth-intensive sites.

The netASPx acquisition adds Lawson and Kronos solutions to NaviSite's existing portfolio of applications management expertise. NaviSite also noted that the netASPx data center in Minneapolis has "significant available capacity." Tier 1's Andy Schroepfer has a detailed analysis of the deal.