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| Velocity Acquires Lawson & Kronos - Managed Application Services Business of NaviSite
(New York, NY February 25, 2010) - Velocity Technology Solutions, Inc., a
leader in enterprise software application management, hosting, and consulting
services, has acquired the Lawson and Kronos hosting business (formerly
NetASPx, Inc.) from NaviSite, Inc. (NASDAQ: NAVI). The acquisition makes
Velocity the largest provider and clear market leader for Lawson-hosted
solutions in North America.
"We are very
pleased to welcome to Velocity the customers and employees of NaviSite's Lawson
/ Kronos application services business.
Together with Velocity, this acquisition facilitates a powerful
combination of talented professionals, innovative solutions, and advanced
cloud-based technologies for the enterprise software market," said Tom
Bruno, President and Chief Executive Officer of Velocity. "Velocity is extremely well suited to
continue providing an outstanding level of service and deliver the personalized
care that customers have come to expect.
Velocity has been a business partner with Lawson for more than 20
years. This transaction expands
our role in the marketplace and enables us to achieve the critical mass
necessary to accelerate our success." As part of the transaction, Velocity acquired the SAS70 Type
II-certified datacenter in Minneapolis, which ensures uninterrupted service and
support to existing NaviSite clients.
This datacenter will extend and strengthen the Velocity On-Demand™
private-cloud architecture, which provides customers with a scalable, secure,
and high-availability processing environment and unprecedented control and
flexibility over their application software. "By divesting our Lawson / Kronos practice we will be better able
to focus on our core enterprise applications business and accelerate the
progress of our NaviCloud suite of solutions. The proceeds from this divestiture will be used to reduce
our debt and will provide us with more balance sheet flexibility in the
future." said Arthur Becker, Chief Executive Officer of NaviSite. "Our goal has always been to provide
the highest level of service, superior application expertise, and unparalleled
technology to our customers. We
are pleased that these customers will be working with an organization like
Velocity that shares those same values" Velocity is a long-standing business partner with Lawson Software,
providing both managed services and professional services. "Through innovative solution offerings
and world-class support we have helped to grow the base of new Lawson customers
as well as expand our existing clients' use of Lawson's suite of software,"
Bruno said. "We have greater - and quicker - access to technological advances
and increased availability of new products and services. It all means increased
value to our customers, and a stronger financial base for our organization." About Velocity Technology Solutions Velocity is a leading application service provider that delivers
enterprise software functionality through a secure private cloud platform. Velocity's clients benefit from hosted,
fully managed environments for their ERP and related software applications;
guaranteed availability, security and compliance; and certified consulting
resources. Velocity's proprietary
delivery system for software hosting, Velocity On-Demand™, brings scalable
computing and fully managed services for mission critical IT systems and
sensitive data. Velocity is
headquartered in New York City, with offices in Minneapolis, Tampa and London,
Ontario. For more
information on Velocity services please visit www.velocityus.com. NaviSite, Inc. (NASDAQ: NAVI) is a leading worldwide provider of
enterprise-class, cloud-enabled hosting, managed applications and services.
With over 20 years experience, the Company provides a full suite of reliable
and scalable managed services, including Applications Services,
industry-leading Enterprise Hosting, and
Managed Cloud Services for
enterprises looking to outsource IT infrastructures and lower their capital and operational costs. Over
1,400 customers depend on NaviSite for customized solutions, delivered through
a global footprint of over a dozen state-of-the-art data centers supported by
approximately 650 professionals. For more information on NaviSite services,
please visit www.navisite.com. Paul Cioni Vice President of Applications Velocity Technology
Solutions, Inc. Phone: 703-561-0452 paul.cioni@velocity-inc.com# # #
All logos,
company and product names may be trademarks or registered trademarks of their
respective owners.
Safe Harbor
Statement
This
release contains forward-looking statements that address a variety of subjects,
including NaviSite's expected future operating and financial results, such as
profitability, revenue growth and EBITDA, the success and performance of our
product and service offerings and our strategic business plans for growing its
customer base and increasing sales. All statements other than statements of
historical fact -- including, without limitation, those with respect to our
goals, plans and strategies set forth herein -- are forward-looking statements.
The following important factors and uncertainties, along with general economic
conditions, changes in economic conditions and others, could cause actual
results to differ materially from those described in these forward-looking
statements. Our success -- including our ability to improve our gross profit, to
improve our cash flows, to expand our operations and revenue and to reach and
sustain profitability -- depends in part on our ability to execute on our
business strategy and the continued and increased demand for, and market
acceptance of, our products and services. We may not remain compliant with our
agreement with our senior secured lenders, including financial covenants. Our
financial forecasts may not be achieved, including those as to expected EBITDA
and revenue. We may be unable to raise the necessary funds to meet our payment
obligations to our lending group under our senior secured credit facility and
other creditors. We may not be able to expand our operations in accordance with
our business strategy. We may experience difficulties integrating technologies,
operations and personnel in accordance with our business strategy. Our
products, technologies and resources may not successfully operate with the
technology, resources and applications of third parties. We derive a
significant portion of our revenue from a small number of customers, and the
loss of any of those customers could significantly damage our financial
condition and results of operations. Competition has increased, and
technological changes made, in the markets in which we compete. For a detailed
discussion of cautionary statements that may affect our future results of
operations and financial results, please refer to our filings with the
Securities and Exchange Commission, including our most recent annual report on
Form 10 K and our quarterly reports on Form 10 Q. Forward-looking statements
represent our current expectations and are inherently uncertain. We do not
undertake any obligation to update forward-looking statements that we make. All
logos, company and product names may be trademarks or registered trademarks of
their respective owners.
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