Cologix Buys NaviSite Dallas Colo Business

Managed hosting provider NaviSite has sold its Dallas colocation business to Cologix Dallas Inc. for $12.75 million in cash, the company said yesterday. All NaviSite's Dallas colocation customers will be transferred to Cologix as part of the deal, in which Cologix will assume NaviSite’s data center lease at the Dallas Infomart. NaviSite will use the proceeds from the sale to repay debt, and will be a customer and bandwidth service provider in the Cologix facility in Dallas.

In June 2009 NaviSite (NAVI) announced an initiative to sell some facilities as part of the company's NaviSite’s strategic plan to divest its colocation-only data centers and focus on complex hosting, application management, and cloud solutions for enterprise clients. In April it announced announced the sale of two data centers in northern Virginia and San Francisco to Virtustream for $5.4 million.

"The sale of the Dallas data center strengthens our balance sheet and allows us to continue focusing on our rapidly expanding enterprise cloud business," said R. Brooks Borcherding, NaviSite’s President and Chief Executive Officer. "We are pleased to remain a customer of Cologix in Dallas and are confident that customers will be well supported by Cologix moving forward."