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Web Hosts Call Off Merger.
2005-11-14, HostMan.biz Web hosting and colocation provider Hosted Solutions (hostedsolutions.com) said late on Friday that a planned merger with managed host DataPipe (datapipe.com) had been called off. Rich Lee, CEO of Hosted Solutions, says the company's strong growth in the last two quarters, as the deal was being pursued was a major factor in the decision to terminate the process. He expects business to proceed as usual. "Over the course of the negotiations it became clear that it was not in the best interests of Hosted Solutions to proceed with the merger," says Lee. "We salute DataPipe and the company's management team for their success, and are confident that they will continue to grow their business." News of the potential merger with DataPipe emerged in July. Hosted Solutions was formerly known as Springboard Managed Hosting. The North Carolina-based company is reported to have had annual sales of $6.7 million last year. DataPipe generates in the range of $40 to $50 million in yearly revenue. |
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