CMGI and Compaq Extend Alliance
Compaq Announces Strategic Investment in CMGion
ANDOVER, Mass. and HOUSTON--(BUSINESS WIRE)--April 20, 2000--CMGI, Inc. (Nasdaq: CMGI) - the world's largest and most diverse network of Internet companies - and Compaq Computer Corporation (NYSE: CPQ) - a top global supplier of Internet infrastructure, access, services, and solutions - today announced that Compaq would join in the formation of CMGion, the new CMGI majority-owned operating company.
As a strategic investor and co-founder of the new company, Compaq will invest $20 million in CMGion for an approximately four percent equity stake in the newly formed company, in addition to providing appliances, server and storage platforms, key operating system components, and technical support.
"Compaq is committed to delivering the best Internet infrastructure, solutions and services, and this new company capitalizes on many of our strengths," said Michael Capellas, Compaq President and Chief Executive Officer. "In addition to our equity investment, we will be a primary provider for key foundation technologies to the venture, including Internet appliances, high-end servers and storage systems, as well as professional services. The partnership will take advantage of Compaq's deep experience in industry-leading platforms - Windows2000, Tru64 UNIX, Linux, and Novell Directory Services and ICS - to ensure the fastest possible development and deployment of the CMGion network service."
"Compaq's support for CMGion takes the strategic relationship between our two organizations to a new level and adds tremendous momentum to the development of CMGion moving forward," said CMGI chairman and chief executive officer, David Wetherell. "The Internet technology leadership represented by CMGI, Compaq, Novell and Sun, each leveraging their respective strengths and expertise to form CMGion, is a watershed event in the evolution of the Internet. With their support, CMGion is uniquely positioned to deliver on its promise to develop and deploy the next generation Internet operating network."
CMGion's core business is designed to enhance the performance and functionality of the Internet by enabling a global network of caching and anonymous, profile-based services. The caching service will improve the end-user experience of any Web-based application. The profiling services will allow enterprise Web sites and "dot com" enterprises to effectively "mine the flow" of their Internet traffic by optimally profiling the content and application requests of their users - allowing them to dramatically improve the user experience while pinpointing opportunities for more effective customer relationship management.
The CMGion network will provide an open platform that interfaces with existing edge servers and networks. Service Providers can partner with CMGion to deliver exciting new profiling and caching services to their .com, enterprise, or ASP customers. The CMGion network is expected to begin beta operations later this year and plans to be offering services early in 2001.
Compaq and CMGI announced a comprehensive strategic alliance in June, 1999 in which CMGI took a majority stake in AltaVista and Compaq became CMGI's largest outside shareholder. Compaq is a premier IT supplier to CMGI and CMGI is a premier Internet technology and solutions supplier to Compaq.
About CMGI and CMGI @Ventures
With more than 70 companies, CMGI, Inc. (Nasdaq: CMGI) represents the largest, most diverse network of Internet companies in the world, including both CMGI operating companies and synergistic investments made through its venture capital affiliate, CMGI @Ventures. CMGI leverages the technologies, content and market reach of its extended family of companies to foster rapid growth and industry leadership across its network and the larger Internet Economy. Compaq, Intel, Microsoft, Pacific Century CyberWorks and Sumitomo hold minority positions in CMGI.
CMGI's majority-owned operating companies include Engage Technologies (Nasdaq: ENGA), NaviSite (Nasdaq: NAVI), 1ClickBrands, 1stUp.com, Activate, AdForce, Adsmart, AltaVista, CMGion, CMGI Solutions, Equilibrium, Flycast, iCAST, MyWay.com, NaviPath, SalesLink, Tribal Voice and yesmail.com. CMGI @Ventures has ownership interests in 54 companies, including Lycos, Inc. (Nasdaq: LCOS), Critical Path (Nasdaq: CPTH), MotherNature.com (Nasdaq: MTHR), Ventro (Nasdaq: VNTR) and Vicinity (Nasdaq: VCNT).
CMGI's corporate headquarters is located at 100 Brickstone Square, Andover, MA 01810. CMGI @Ventures has offices there, as well as at 3000 Alpine Road, Menlo Park, CA 94028. For additional information, see cmgi.com and ventures.com.
siliconinvestor.com
sn |
