May 6, 2004 9:48 AM PDT
NaviSite buys out rival Surebridge
NaviSite will issue two promissory notes worth $39.5 million, and 3 million shares of stock worth $14.7 million, based on yesterday's closing price. NaviSite said it is planning to close the deal later this month.
NaviSite expects additional revenue of about $11 million from the deal and hopes to report $3 million to $4 million in earnings, before taxes and other costs from the combined entity, in the quarter ending Oct. 31.
A separate statement from the company said it appointed John Gavin, formerly at Novell's Cambridge Technology Partners, its new chief financial officer.