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NaviSite Announces Sale of Lawson/Kronos Managed Application Services Business
2/22/2010
Andover, MA, February 22, 2010 - NaviSite, Inc.
(NASDAQ: NAVI), the worldwide leader of cloud-enabled, enterprise-class
hosting, managed applications and services, today announced the sale of
its Lawson / Kronos Application Services business to Velocity Technology Solutions, Inc.
for $56 million in cash. All current NaviSite Lawson / Kronos customers
will be transferred to Velocity as part of the transaction. Velocity
will also assume NaviSite’s lease of the Minneapolis data center where
the services are hosted, managed, and supported. The transaction is
effective immediately.
“The sale of our Lawson / Kronos business is consistent with our
strategy to focus on providing Enterprise-class cloud computing for
large organizations with highly complex environments,” 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. 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.”
“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.”
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.
About NaviSite
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
comprising 16 state-of-the-art data centers supported by approximately
650 professionals. For more information on NaviSite services, please
visit www.navisite.com.
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