Internap Acquiris VitalStream

[outsourcingplans]

Internap will issue approx 11.9 million shares of stock of outstanding VitalStream common shares; represents approx 26% of the combined company's shares.


Internap Network Services Corporation, a provider of performance-based routing solutions, yesterday announced it has reached a agreement to acquire VitalStream Holdings, Inc., a streaming media solutions and global content delivery provider.

Under the terms of the transaction, Internap will issue approx 11.9 million shares of stock in respect of outstanding VitalStream common shares, which will represent approx 26% of the combined company's shares. This is an exchange ratio of 0.5132 Internap shares for every VitalStream share. Based on the closing price of Internap's stock on October 11, 2006, the transaction is valued at an aggregate purchase price of approx $217 million. The acquisition is expected to close by the first quarter of 2007, says the company.

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