Feeds

CMGI cuts ties with past, sells NaviSite

ClearBlue purchase

  • alert
  • submit to reddit

Reducing security risks from open source software

ComputerWire: IT Industry Intelligence

CMGI Inc yesterday said it has sold the second of its firstborn, NaviSite Inc, to ClearBlue Technologies Inc, for an undisclosed amount. Earlier this week, CMGI divested its interest in Engage Inc, which CMGI formed at the same time as NaviSite in 1997.

ClearBlue has acquired HP Financial Services' 3.2 million NaviSite shares and $55m convertible debt position and CMGI's 76% equity and $10m convertible note in NaviSite, giving it 79% of NaviSite's equity. If it were to convert the notes being acquired it would own 94% equity. In exchange, HPFS and CMGI get to share a 24% stake in ClearBlue.

Having spent the large part of the dot-com years acquiring technology firms, struggling CMGI is now fine-tuning its strategy on what it sees as core assets. Last month it closed the acquisition of iLogistix (Software Logistics Corporation), as part of its effort to beef up its e-business and fulfillment segment.

ClearBlue, a holding company with its roots in Israel, has also been vulturing for bargains this year, snapping up the European assets of bankrupt PSINet Inc six months ago and bankrupt AppliedTheory Corp in June in an effort to build out hosting and internet connectivity business in the US and Europe.

NaviSite's loss of $2.million in the third quarter to April 30 contributed to CMGI's overall loss of $125.2m, but with the divestiture, future losses will not count against CMGI's numbers. CMGI still owns five companies that are not in its e-business and fulfillment segment, including AltaVista Co, YesMail and Equilibrium.

© ComputerWire

Eight steps to building an HP BladeSystem

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.