Feeds

CMGI cuts ties with past, sells NaviSite

ClearBlue purchase

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

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

Internet Security Threat Report 2014

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
In the next four weeks, 100 people will decide the future of the web
While America tucks into Thanksgiving turkey, the world will be taking over the net
Microsoft EU warns: If you have ties to the US, Feds can get your data
European corps can't afford to get complacent while American Big Biz battles Uncle Sam
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.