PICK: CNCX @ 17
This stock has been in a long slow slide from
just over $50.00 to the present price ..
CNCX offers a way to get xDSL/web hosting/e-commerce
all in one package at very favorable comps to their
competitors in xDSL and hosting spaces ..
41.4 mm shs / 12.4 mm shs float
$300 mm cash or $7.25 cash per share
Revenues +$110 mm
MCAP +$743 mm
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Monday October 4, 7:30 am Eastern Time
Company Press Release
SOURCE: Concentric Network Corp.
Concentric Network to Acquire 9 Net Avenue, Becoming Second-Largest Shared Web Hosting Provider
Purchase to Fortify Concentric's NT-Based Hosting and E-Commerce Strength, Adding Additional Marketing and Engineering Expertise
SAN JOSE, Calif., Oct. 4 /PRNewswire/ -- Concentric Network Corp. (Nasdaq: CNCX - news), a leading provider of e-business solutions for small- to medium-sized companies, today announced that it has executed a definitive agreement to purchase New Jersey based 9 Net Avenue, Inc., a leading Web hosting company, for $54 Million in stock and cash. This deal is additive to Concentric's Web hosting and e-commerce strength, supplies additional distribution channels in the U.S. and significantly increases Concentric's customer base. Once completed, Concentric believes it will be the second- largest Web hosting provider with over 188,000 registered domains and over 104,000 hosted Web sites. Moreover, this will solidify Concentric's position as the leading Web hosting and e-commerce solution provider for small- and medium-sized businesses.
''Our acquisition of 9 Net Avenue reinforces our position as the leading provider of e-business solutions for small- to medium-sized companies,'' said Henry R. Nothhaft, chairman, president and CEO of Concentric Network. ''In particular, 9 Net Avenue brings depth to our Microsoft NT-based Web hosting and e-commerce solutions, a substantial base of hosted customer sites, plus additional engineering and development expertise. When complete, our combined number of Web hosting sites will exceed 104,000. This marks a significant milestone for Concentric, as we believe this propels us to the position of second-largest shared hosting provider.''
9 Net Avenue is a leading hosting provider offering a wide range of services, including domain parking, UNIX and NT-based Web hosting, e-commerce, dedicated hosting and co-location services. 9 Net Avenue has a data center facility located in Secaucus, New Jersey with connections to Tier 1 providers and peering arrangements with top Internet companies. 9 Net Avenue is a highly regarded and well-established Web hosting company with a substantial marketing and direct sales force.
Concentric intends to fully integrate 9 Net Avenue's network operation into the existing network, and as well as gaining a state-of-the-art data center, Concentric also gains key sales, engineering and marketing personnel. ''In addition to gaining East Coast data center capacity and greater critical mass, this deal augments our organic growth,'' said Nothhaft.
About Concentric Network Corporation
Concentric Network Corporation provides complete, easy-to-use Internet business solutions for small- to medium-sized companies and customized Virtual Private Network and data center services for larger organizations. Concentric's portfolio of services for small- to medium-sized companies includes high-speed DSL access, Web hosting and e-commerce. For larger enterprises, the company offers dedicated Web hosting and data center services. Concentric is the first application infrastructure provider, offering a suite of infrastructure services that enable application service providers to deliver applications and Web-based services over the Internet or a VPN. Concentric's VPN solutions enable an organization to securely and reliably communicate with its offices, mobile sales force, business partners, vendors and customers. Concentric's services rely on a high-performance, ATM-based network that covers North America, and through various partnerships, reaches internationally. Concentric also operates state-of-the-art hosting centers at strategic locations across the U.S. All Concentric services are backed by 24 hour/7 days a week customer support, and many are backed by strong service level agreements.
The company has received Most Innovative ISP two-years in a row from Inter@ctive Week, and recently received two Well-Connected Awards from Network Computing for Most Innovative Service Provider of the Year and for Best Enterprise Internet Service Provider for ConcentricHost(TM). Deloitte & Touche recently ranked Concentric the 6th fastest growing technology company in Silicon Valley, as part of their Fast 50 Program. The company consistently receives top ratings by Inverse Network Technology, an independent research firm that grades the performance of network service providers each month. Traded on Nasdaq under the symbol ''CNCX,'' Concentric Network is headquartered in San Jose, Calif., with operations offices in Southern California, Chicago, Il., St. Louis, Mo., and Saginaw, Mich., along with sales and channel support across the U.S. For more information, access the company's Web site at concentric.net or contact Public Relations at publicrelations@concentric.com.
Concentric has reached an agreement to acquire Internet Technology Group plc (AIM: ITH.L), a leading provider of Internet access and hosting for businesses in the UK. The acquisition is subject to Internet Technology Group shareholder, court and regulatory approvals and is currently expected to close in the fourth quarter of 1999.
This press release contains forward looking statements regarding Concentric's proposed acquisition 9 Net Avenue, Inc., and the potential benefits to be realized by the combined companies, including but not limited to solidifying Concentric's market position, the total number of registered domains and hosted Web sites, and additional growth potential, that are subject to risks and uncertainties. Actual results may differ materially from those described in the forward looking statements as a result of a number of factors, including the requirement for 9 Net Avenue, Inc. stockholder approval, and the ability of the combined groups to successfully integrate their operations and network, and maintain their customer relationships.
Concentric Network Corporation and the Concentric logo are registered trademarks of Concentric Network Corporation. All other trademarks are the property of their respective owners.
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Tuesday October 5, 8:00 am Eastern Time
Company Press Release
SOURCE: Concentric Network Corp.
Concentric Expands Dedicated Access Services, Launching New Multi-Megabit Service and Aggressive T3 Pricing
Nationwide High-Speed Internet Access Provides Companies With a Full Suite Of Flexible Bandwidth Levels
SAN JOSE, Calif., Oct. 5 /PRNewswire/ -- Concentric Network Corp. (Nasdaq: CNCX - news), a leading provider of e-business solutions for small- to medium-sized companies, today announced expanded dedicated access services, providing corporate customers lower cost, entry-level MultiMegabit Internet access and aggressive T3 pricing. Concentric's new MultiMegabit service -- ConcentricIMUX -- delivers tiered Internet access at bandwidth levels between 3 Mbps and 6 Mbps, offering fractional T3 bandwidth without the traditional expense of a T3 local loop. For those companies requiring bandwidth greater than 6 Mbps, Concentric is also offering very aggressive promotional pricing for T3 services, allowing companies to cost-effectively obtain scalable dedicated access.
ConcentricIMUX bonds up to four T1 lines to form one discrete logical channel, ideally suited for those companies requiring speeds between 3 Mbps and 6 Mbps. This cost-effective approach avoids a costly T3 local loop charge, yet provides fractional T3 equivalent bandwidth. Moreover, this solution delivers failover and redundancy for each of the load-balanced T1's comprising the bonded channel. This Inverse Multiplexer (IMUX) technology delivers a discrete, continuous high-speed data steam to the customer's premise by bonding individual T1 channels together. Concentric is utilizing Larscom's Orion 4000 broadband multiplexers within its POPs, and Mega-T inverse multiplexers to enable the data stream parceling at the customer's premise. This solution delivers a cost savings of nearly 66% over traditional dedicated T3 local loops.
''Before, Internet customers who needed bandwidth greater than 1.5 Mbps had to move to one or more high capacity leased-lines, which for many companies is a cost prohibitive approach,'' said Henry R. Nothhaft, chairman, president and CEO of Concentric Network. ''This solution bridges the previous gap between T1 and T3 service, providing additional flexibility and pricing options.''
T3 Promotional Pricing
For companies requiring bandwidth at speeds greater than 1.5 Mbps, Concentric also offers FlexChannel and FullChannel T3 services. These T3 solutions are engineered for flexibility, high-performance and scalability, running over Concentric's own private ATM-based backbone with OC-3 to OC-48 capacity. FlexChannel T3 is ideally suited for companies that require fixed rate, highly scalable multi-megabit bandwidth, without being required to pay for a full 45Mbps port speed on day one. This flexible and scalable solution provides speeds between 3Mbps and 45 Mbps (in 3Mbps increments). Concentric's FullChannel T3 service is well suited for customers who require a fully burstable 45Mbps Internet connection. Both flat rate and usage based billing options are available for FullChannel T3.
FlexChannel and FullChannel services are available with additional CPE options. Concentric supports the Cisco 7000 series of multi-protocol routers, with an integrated CSU/DSU. Concentric is also introducing Xedia's Access Point 45 router for a lower cost T3 access router. Promotional pricing and reduced installation fees, currently available for FullChannel T3 services start as low as $20,000 per month with a $3,000 set-up.
This promotional pricing is available for orders received throughout December 31, 1999. In total, this aggressive promotional pricing constitutes a savings of up to 60% off the monthly price of other Tier 1 ISPs.
Price and Availability
The ConcentricIMUX service is available immediately nationwide. Offered in 3 Mbps, 4.5 Mbps and 6 Mbps port speeds, pricing starts at $3,995 per month. Additionally there is a one-time set-up fee of $5,000 and the Larscom Mega-T Inverse Multiplexer is $6,999.
Concentric's FlexChannel service is currently available in a wide range of speeds up to 45 Mbps, and FullChannel T3 is always burstable up to a full 45Mbps. BGP is also available as a routing option. For more information visit our Web site at www.concentric.net/t3. For a price quote call toll-free 800-539-0214, or send an e-mail to bizsales@concentric.com.
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Tuesday October 5, 8:00 am Eastern Time
Company Press Release
SOURCE: Concentric Network Corp.
Concentric Network Selects Cobalt Networks Server Appliances to Provide New Linux-Based Dedicated Web Hosting Solution
Concentric Offers ConcentricHost Managed Server Linux With Cobalt RaQTM 2 Server Appliances
SAN JOSE, Calif., Oct. 5 /PRNewswire/ -- Concentric Network Corp. (Nasdaq: CNCX - news), a leading provider of e-business solutions for small- and medium-sized companies, today unveiled -- ConcentricHost Managed Server Linux -- a new dedicated hosting solution utilizing Cobalt RaQ(TM) 2 server appliances from Cobalt Networks, Inc. Cobalt RaQ 2 server appliances will be managed in Concentric's state-of-the-art, telco-grade data centers. The ConcentricHost Managed Server Linux solution, delivers performance and flexibility, with a Web-based user interface for easy site management. Complete with file system backup and extensive bandwidth and Web site reporting, this hosting service is ideal for small-to medium-sized businesses and Internet-centric companies.
Running on Cobalt's RaQ 2 server appliances, ConcentricHost Managed Server Linux allows companies to outsource their Web hosting needs and focus on their core capabilities. As part of the service, Concentric provides the server hardware, operating system, monthly data transfer, Tier 1 network and data center facilities, expert 24 x 7 server and network monitoring, reporting capabilities and ongoing Web server maintenance and management.
''Working with Concentric to deliver dedicated Web hosting solutions is an ideal partnership between two companies that identify the importance of reliable, affordable, and scalable solutions,'' said Stephen DeWitt, president and CEO of Cobalt Networks, Inc. ''Concentric is perceived as one of the world's leading providers of Internet business solutions. ConcentricHost Managed Server Linux is sure to expand Concentric's offerings and services helping them further differentiate themselves in the market.''
The Cobalt RaQ 2 is a rack mountable server appliance optimized for businesses who require flexible, easy-to-manage Internet services and Web hosting solutions. Pre-configured with the Linux operating system, Apache Web server, Sendmail, and FrontPage server extensions, Cobalt RaQ 2 server appliances provide the core Web publishing, email, and file transfer services, upon which users can build their solutions.
''When Concentric evaluated the Cobalt RaQ 2, we immediately recognized the value proposition we could bring to our customers,'' said Henry R. Nothhaft, chairman, president and CEO of Concentric Network. ''ConcentricHost Managed Server Linux is yet another addition to our arsenal of Web hosting solutions. We were able to leverage Cobalt's RaQ 2 server appliances and combine the technology with Concentric's premier data centers and server maintenance, and management expertise, to deliver a quality, scalable Linux-based hosting solution.''
Concentric's redundant hosting center environment and high-performance, nationwide ATM backbone ensures performance and reliability. ConcentricHost Managed Server Linux solutions provide a dependable, high-performance hosting environment for dedicated servers including, generous amounts of monthly data transfer and scalable bandwidth options, switched Ethernet connectivity, multiple IP addresses, unlimited POP3 e-mail accounts, DNS registration, file system backup, and on-site 24-hour server and network monitoring.
''Our Web hosting services are flexible and scalable, and designed for growing small- and medium-sized businesses,'' said Connie DeWitt, vice president of marketing for Concentric's network applications services division. ''Now we are able to deliver a new class of dedicated server, that is both cost-effective and very easy-to-use, allowing small- and medium-sized companies to fully leverage the power of the Internet.''
Price and Availability
ConcentricHost Managed Server Linux is available now. Pricing starts at $225 per month with a $225 set-up fee, providing 250 Mhz CPU, 10 MB monthly data transfer and varying levels of systems backup services and reporting capabilities.
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