Yesterday an interesting cloud M&A hit the wires, as Internap Network Services (NASDAQ:INAP, news, filings) announced plans to acquire iWeb. It's Internap's first substantial inorganic move since the Voxel deal almost two years ago, and will boost their ambitions to take on a bigger piece of the global infrastructure-as-a-service market.
Montreal-based iWeb focuses on hosting and cloud services, with some 10K SMB customers and an online multi-lingual interface. That will complement Internap's product set, which still has a heavier tilt toward colocation and connectivity, and its customer base, which has been aimed at somewhat larger clients historically. Put them together, and Internap clearly hopes to crack the top tier of independent, comprehensive IaaS solution providers.
iWeb had $44M in revenue during the previous twelve months, earning $11M in EBITDA. The combined company will therefore have in the neighborhood of $310-320M in annualized revenue. Internap is paying $145M for the purchase, which it will pay for via a new $350M credit facility from Jefferies and PNC Bank.
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