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To: Jeff Jordan who wrote (28832)	1/7/2000 4:08:00 PM
From: AlienTech	Respond to of 43080

Interliant climbs on acquisition news By Richard Peal, ZacksNEWS reporter. Thursday January 6, 1999. Shares of Interliant (ticker INIT) a provider of Web hosting and Internet services, rose today on the news that it would acquire The Jacobson Group (TJG), a professional services company which specializes in Lotus Notes development. The $7.5 million acquisition of TJG, with annualized of $3 million, will add 20 employees to Interliant's workforce, 14 of which are consultants. "We believe TJG truly strengthens Interliant's ability to provide the highest level of expertise and professional services to customers," said C.E. Unterberg, Towbin's Bill Dering who expects the deal to add roughly $4 million to Interliant's top line. Dering, who reiterated his "strong buy" rating, believes that TJG strengthens Interliant's services for Lotus Notes/Domino projects. Shares of the Purchase, New York-based company closed up 2 to $35 3/8, reaching a new 52-week high and surpassing Dering's previous $34 target price which is currently under review. "The acquisition is an expansion of Interliant's plan that will incorporate TJG's proprietary applications," said analyst Cameron Hight at Donaldson, Lufkin, & Jenrette. For the nine months ended September 1999, revenues totaled $28.1 million, up from $2.6 million. Net loss totaled $37.5 million, up from $5.3 million. Revenues benefited from the acquisition of 18 various businesses. Higher loss reflects increased operating expenses associated with the acquisitions. Dering raised his fiscal 2000 revenue estimate to 107.8 million from $103.8 million and $190.2 million respectively", said Dering. "However, due to the goodwill, we are lowering our earnings per share estimates to ($2.26) in fiscal 2000 and to ($2.80) in fiscal 2001," he added. Analysts polled by Zacks estimate Interliant to earn ($1.65) and ($2.42) per share in fiscal 1999 and 2000 respectively. Three out of three analysts tracked by Zacks maintain a "buy" rating on Interliant shares. Interliant is a provider of a comprehensive array of hosting and enhanced Internet services that enable customers to deploy and manage their Web sites and network-based applications more effectively. --------------------------------------------------------------------------------