Interliant Inc, a provider of internet hosting services has acquired Sales Technology Ltd, a customer relationship management services firm. Purchase, New York-based Interliant has made 19 acquisitions since December 1997, most of them in the web hosting environment. It started out as Sage Networks of Boston, but in the course of turning itself into a web-hoster swallowed Houston-based Interliant in March 1999 and took on its name.
The New York firm reckons that by concentrating on hosting, and ignoring the drive to win internet connection contracts, it can win market share away from internet service providers and competitors like Verio and Concentric.
Sales Technology is headquartered in London and represents not only part of Interliant’s move towards building up a professional services organization, but also the first step outside its US power base. Privately-owned Sales Technology has revenue of around 1m pounds ($1.6m). Services currently make up 20% of Interliant’s total revenue, but president James Lidestri says he aims to increase this figure to around 35%. The bulk of the revenue, however, comes from the hosting services; 80% is currently split between web and application hosting.
In terms of geographical expansion, said Lidestri, Germany is next. Interliant already has an office in the UK, but Sales Technology will give the company the critical mass to win market share. Interliant is taking heavy losses; in its second quarter figures, it recorded a loss of $14m on revenue of $10.6m with a six-month loss of $21.8m on revenue of $16m. Lidestri says that analyst reports which forecast the company turning the corner and a profit in late 2001 are reasonable if a little conservative.
