Companies aren't usually chatty when they're conducting due diligence for a potential acquisition. But a company called Virogen has issued two press releases on successive days outlining its plans to acquire a company operating four data centers in the southeast region of the United States.
Virogen (VRNI) is a publicly-held company that initially focused on animal vaccines to control disease in poultry. In 2009 it sold off its vaccine business and became a holding company. Virogen then teamed with Tiger Team Technologies (T3), which developed a suite of proprietary tools to address network security. Shares of Virogen currently trade for 11 cents on the Nasdaq "pink sheets" market.
On Tuesday the company issued a press release saying it was in "substantive discussions" to acquire the data center operator, saying T3's business model requires "vast" cloud computing capabilities.
"We are very excited about the opportunity to acquire such a vibrant company that is a perfect strategic fit with the company's overall business plan," said Paul Hogan, CEO of Virogen. "Additionally, upon closing of the acquisition, we would have the opportunity to penetrate the target company's client base with Tiger Team's very unique product offering. This is a wonderful opportunity for the company to develop an additional profit center that would be accretive to the top line and the bottom line revenues immediately."
On Wednesday, Virogen issued another press release outlining the revenue potential "when it finalizes the acquisition." The company said the deal is currently in the due diligence phase.
"Bringing on these multiple new data centers would add approximately $7 million to our gross revenue and approximately $3 million to our net operating revenue," said Hogan. "We are very excited and confident that this acquisition will become finalized during the first quarter of 2012."