Aug 08, 2001
The merger brings together the company's HostPro subsidiary, already the fourth-ranked Web hosting company, with sixth-ranked Interland, vaulting the new combined company to the number two position in terms of total number of Web sites it hosts, and creating the number one provider of business-class Web hosting to small and medium business customers.
"The new Interland is uniquely qualified to meet the Web business needs of small and medium businesses, with the best portfolio of business-class hosting solutions, and the highest level of customer satisfaction in the industry," said Joel J. Kocher, chairman and chief executive officer of Interland. "And the efficiency of our business model, coupled with our very strong financial position, sets us apart from our competitors."
"We launch the new Interland with well over $200 million in cash and cash equivalents on our balance sheet, with more than $27 million in cost synergies already identified, with very low debt, and a clear path to profitability. The new Interland is positioned to lead in a market that is expected to quadruple within the next four years," said Kocher.
The company expects to launch a consolidated and enhanced product line, along with new Web site and advertising campaign, in September. In the meantime, Kocher said, it will continue to sell under both the former Interland and HostPro brands, and all customer contact information remains the same.
In accordance with the March 23 acquisition agreement, stockholders of the former Interland receive 0.861 shares of the new company's common stock for every share they owned of the former Interland. No adjustment to the exchange ratio was required, because Micron exceeded the required $200 million in net available cash at the time of closing.
The new company will have approximately 138 million shares outstanding. The transaction is accounted for as a purchase and is tax-free to Interland stockholders.
The new eight-member Board of Directors includes Joel J. Kocher, chairman; Ken Gavranovic, vice chairman; and directors Steven R. Appleton, John B. Balousek, Robert Lee, Robert Lothrop, Gregg A. Mokenhaupt, and Robert T. Slezak.
The officers of Interland approved by the Board of Directors are Joel J. Kocher, chairman and CEO; Ken Gavranovic, vice chairman and chief technology officer; Mark Alexander, senior vice president of sales and marketing; David Buckel, senior vice president and chief financial officer; Sid Ferrales, senior vice president and chief human resources officer; Nick Farsi, senior vice president and chief information officer; Barbara Gibson, vice president of public relations; Garrett Mullins, vice president of sales and customer service; Cliff Luckey, vice president of engineering and data center operations; and Steve Arnold, vice president and general counsel.
The company headquarters has been relocated to 303 Peachtree Center Ave.,
Suite 500, Atlanta, GA, 30303.
