NaviSite, Inc. Expands Managed Application Capabilities with Acquisition of Avasta, Inc.
Avasta Managed Application capabilities will increase revenue, continue transformation of NaviSite, Inc. into leading Managed Application provider to the Mid-Market
ANDOVER, Mass., January 29, 2003 --NaviSite Inc. (Nasdaq: NAVI), a provider of Always On Managed Hosting(SM) services, today announced it has entered into a definitive agreement to acquire Avasta, Inc., a leading provider of Managed Application services as well as creator of application operations technology known as the Avasta Application Management Suite.
“The number one customer pain point is in the long-term support and management of their business critical applications.” said Tricia Gilligan, CEO of NaviSite. “Avasta is an innovative market leader with a strong customer base and solid channel relationships. When blended with the existing NaviSite capabilities, the Avasta managed application expertise will allow us to manage customer applications wherever they are housed. This capability aligns perfectly with our strategy of being the full service provider of applications management services and technology to mid-sized enterprises, government, and business units of Global 2000 companies.”
Avasta has focused on providing services to mid-market enterprises. The company manages applications for 75 companies, including Documentum, Golden State Vintners, R&L Carriers and Wilbur-Ellis.
"We're an Avasta customer because they are a leader in managing enterprise applications," said Christopher Bruno, VP Sales for FullDegree, a provider of product information management software. "Working with Avasta has resulted in dramatic cost savings and high availability for our applications. With the addition of Navisite's broad infrastructure and application services, the new company will have an unparalleled capability to manage critical enterprise systems and should have a tremendous impact on the market. "
Avasta has also been able to develop productive channel partnerships with system integrators, including Accenture.
“The need to manage applications is a natural extension of the traditional managed infrastructure business. Navisite will remain focused on demonstrating innovation and leadership in these important areas,” stated Andrew Ruhan, Chairman of NaviSite's Board of Directors. “This acquisition is another critical step in our overall strategy of leveraging our platform to profitability.”