Hiway Technologies, Inc. [HWAY] Message Board

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Technology Stocks : Hiway Technologies, Inc. [HWAY]

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To: Brett Fleischman who wrote (1)	7/29/1998 9:27:00 PM
From: Francis Gaskins	of 3

Goodby Hiway Technologies... Verio buys Hiway Tech. A good buy for $101 mm cash, $250 mm stock? Very good move for Hiway Tech. On the face of it a very good strategic move for Verio, but also a very expensive move for a company that is expected to lose over $100 mm in 1998 [Verio]. Looks very much like it is time for another Verio stock offering... to fuel this 'cash guzzler'. "Verio to buy Hiway Technologies" news.com ------------------------------------------------------ [note from FG] Exodus has a market cap today of $669 mm. ..........................Exodus [EXDS].....Hiway Tech For the quarter ending March 31, 1998 Sales...........................$7.1.............$8.8 Pre-tax operating earnings......(9.6)...............$1.3 Retained earnings......($44 mm).........$2.6mm ------------------------------------------------------ "Verio to buy Hiway Technologies" Verio said today that it would acquire Hiway Technologies, a Web hosting company, for about $351 million in cash and stock. The deal calls for Verio to pay $101 million in cash and $250 in stock at an agreed-upon price, a spokesman said. The companies expect the deal to close in the fourth quarter of 1998. Hiway will get one seat on Verio's board. "The combination creates the largest and fastest-growing domain-based Web hosting company with more than 150,000 Web sites," the companies said in a statement. Verio provides Internet connectivity, Web hosting, and other Internet services. Hiway had $9.7 million in revenue and $1.4 million of operating income for this year's second quarter. The combined companies expect to gain a savings of about $5 million per year phasing in through the second half of 1999 as a result of shared infrastructure. Hiway recently merged with Best Internet Communications. Verio stock was up 2.125 to 28.5 in midmorning trading, nearing a 52-week high. The shares have traded as high as 31.875 and as low as 16.5 in the past 52 weeks.

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