PURCHASE, N.Y., April 15, 2003 (PRIMEZONE) -- Interliant, Inc. (OTCBB:INIT), a provider of managed infrastructure solutions, today announced that Pequot Ventures (Pequot), the direct investment arm of Pequot Capital Management, Inc., a private investment firm with approximately $6 billion of assets under management, has signed an agreement to acquire Interliant's managed infrastructure solutions business. This represents substantially all of Interliant's remaining assets and is comprised of its managed messaging/collaboration, managed hosting, managed security, and consulting businesses, as well as its UK operations. The acquisition is structured as an asset sale under section 363 of the US Bankruptcy Code and includes the assumption of certain liabilities associated with the assets being acquired.
Upon the closing of the acquisition, Pequot expects to expand Interliant's activities from its current base of operations. The parties expect the closing to occur on or about the first week of June 2003.
"The acquisition of Interliant by a successful and well-regarded private investment fund is an indication of the power of the selective outsourcing model for messaging, collaboration and managed hosting solutions," said Francis J. Alfano, Interliant's president and CEO. "This transaction provides strong financial support and allows our customers to be confident about our ability to provide them with services well into the future. We can now focus all of our energy on growing Interliant's business, providing our customers the high level of service and solutions that we have delivered throughout our restructuring, and on expanding our capabilities."
"Pequot invests in growing companies poised to accelerate to the next level. With its diverse customer experience, global presence, strong management team, and world class technological and operational excellence, Interliant is well positioned to be a leader in the growing managed infrastructure market," said Gerald A. Poch, managing general partner of Pequot. "We are very excited about the future of this business."
The proposed sale is subject to certain conditions, including an auction and the approval of the transaction by the Bankruptcy Court in Interliant's pending Chapter 11 proceeding. Following the proposed sale, the Company intends to file a plan of liquidation distributing all of its assets, including all proceeds from the proposed sale, to its creditors.
About Interliant
Interliant, Inc. (OTCBB:INIT) is a leading provider of managed infrastructure solutions, encompassing messaging, security, and hosting plus an integrated set of professional services that differentiate and add customer value to these core solutions. The company makes it easier and more cost-effective for its customers to acquire, maintain, and manage their IT infrastructure via selective outsourcing. Headquartered in Purchase, New York, Interliant has forged strategic alliances and partnerships with the world's leading software, networking and hardware manufacturers, including Check Point Software Technologies Inc., IBM and Lotus Development Corp., Microsoft, and Sun Microsystems Inc.
On August 5, 2002, Interliant filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code.
For more information about Interliant, visit www.interliant.com.
About Pequot Ventures
Pequot Ventures is the direct venture investment arm of Pequot Capital Management, Inc. and has a direct investment focus on today's most dynamic startup and growth stage companies in technology, telecommunications and healthcare. Pequot Ventures creates value by bringing energy and substantial sector expertise to its portfolio companies through the collective intellectual capital, deep operating experience and extensive network of its investment team. The firm leverages its unique multi-billion dollar presence across both public and private equity markets to help build competitive, sustainable businesses in fast changing environments throughout their lifecycle. Pequot Ventures accomplishes this goal in close partnership with the founders and management teams of its portfolio companies.
Interliant is a trademark of Interliant, Inc., in the United States, other countries, or both.
This press release contains forward-looking statements that can be identified by the use of words such as "anticipate," "believe," "estimate," "expect," "intend," "may," "will," "plan," "forecast" and similar words and expressions. Such forward-looking statements involve risks and uncertainties that may cause actual results, performance, achievements and the timing of certain events to differ significantly from the results discussed or implied in the forward-looking statements. Therefore, no forward-looking statement can be guaranteed. Important factors to consider in evaluating such forward-looking statements include uncertainty that demand for our services will increase and other competitive market factors, changes in Interliant's business strategy or an inability to execute Interliant's strategy due to unanticipated changes in its business, its industry or the economy in general, unforeseen difficulties in integrating acquisitions and other factors set forth more fully in Interliant's Annual Report on Form 10-K for the fiscal year ended December 31, 2002, and other filings with the Securities and Exchange Commission. It is not possible to foresee or identify all factors affecting Interliant's forward-looking statements and investors therefore should not consider any list of factors affecting Interliant's forward-looking statements to be an exhaustive statement of risks, uncertainties or potentially inaccurate assumptions. Interliant does not have a policy of updating or revising forward-looking statements, and thus it should not be assumed that Interliant's silence over time means that actual events are bearing out as expressed or implied in such forward-looking statements.