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Terremark Acquires European Managed Dedicated Hosting Provider - Acquisition Expands Terremark's Market Reach and Product Offerings

MIAMI--(BUSINESS WIRE) , Monday August 8- Terremark Worldwide, Inc. (AMEX: TWW - News ), a leading operator of integrated Tier-1 Internet Exchanges and best-in-class network services, announced today the acquisition of Dedigate N.V. (Dedigate), a privately held European managed dedicated hosting provider. Terremark acquired all of the outstanding stock of Dedigate in exchange for 1.6 million shares of Terremark's common stock. Dedigate's existing annual recurring revenue is approximately $7 million, with projected revenues over the next twelve months to exceed $10 million and it is expected to be accretive for Terremark's fiscal year ending March 31, 2006.

Dedigate provides managed dedicated, secure hosting services to enterprise customers, e-commerce marketplaces, system integrators, ASP's and web designers using proprietary technology to remain automated and scalable across geographically remote locations. The Dedigate solution allows for the rapid integration and deployment of their products in each of Terremark's Internet exchanges around the world.

According to the Gartner Group, 48% of the Fortune 1000 companies look to managed hosting providers when externally hosting their websites. Dedigate's comprehensive and proven product portfolio accelerates Terremark's penetration in the enterprise sector. Its European presence is highly complementary to Terremark's strategic growth plans and provides the market with a geographic offering combining the U.S., Europe and Latin America.

"We have been examining acquisitions that are accretive both on the basis of revenue and technology. Acquiring Dedigate is consistent with our strategy of maximizing our revenue yield by layering managed services onto our existing infrastructure services and connectivity platform," said Manuel D. Medina, Chairman and CEO of Terremark Worldwide. "Adding a family of scalable, proven hosting and infrastructure management products allows us to better address the business continuity and disaster recovery needs of the enterprise and government sectors, and gives us the ability to provide a complete solution to our new and existing customers."

Since its founding in early 2000, Dedigate has become a provider of sophisticated managed hosting solutions for U.S. and European enterprises, delivering its solutions out of six data centers in Europe. Due to its automated approach of service delivery, Dedigate is able to remotely manage the mission-critical infrastructures of its customers from any physical location around the world. Their Network Operations Center (NOC) is located in Ghent, Belgium.

"Dedigate's technological expertise, automated systems and deep understanding of the dedicated hosting business has allowed it to successfully compete head to head with large global players for a share of the European enterprise hosting market," said Herman Oggel, Chairman and CEO of Dedigate. "We believe that by uniting our services with Terremark's Internet exchanges in Europe, the U.S. and Latin America, we will create a powerful combination that will change the competitive dynamic of this business."

Over 70 U.S., European and Asian enterprises are customers of Dedigate, including Exostar, Quadrem, Kelkoo, Pfizer, Samsonite and Pioneer.

Additional information regarding this acquisition will be provided at Terremark's quarterly earnings call scheduled for August 10, 2005 at 11:00 a.m. ET. For more details visit our Investor Relations site at .

About Dedigate:

Dedigate, The Uptime Company, is a European technology company specialized in Managed Dedicated Hosting services for complex (Internet) infrastructures. Dedigate serves, out of 6 Europe-based data centers, over 70 customers in a wide variety of industries.

Managed Dedicated Hosting:

Managed (Dedicated) Hosting Services are designed to deliver availability, scalability and security towards mission critical business applications like ERP and CRM systems, communication platforms and high volume e-commerce sites.

About Terremark Worldwide, Inc.:

Terremark Worldwide, Inc. (AMEX: TWW - News ) operates Internet exchange points from which it provides colocation, interconnection and managed services to the government and commercial sectors. The company's Internet exchange point facilities, or IXs, are strategically located in Miami, Florida; Santa Clara, California; Madrid, Spain and Sao Paulo, Brazil and allow networks to interconnect and exchange Internet and telecommunications traffic. Terremark's flagship facility, the NAP of the Americas, in Miami, Florida was designed and built to disaster-resistant standards with maximum security to house mission-critical systems infrastructure. The company's secure presence in Miami, a key gateway to North American, Latin American and European telecommunications networks, has enabled it to establish customer relationships with U.S. Federal government agencies, including the Department of State and the Department of Defense. Terremark is headquartered at 2601 S. Bayshore Drive, 9th Floor, Miami, Florida USA, 305-856-3200. More information about Terremark Worldwide Inc. can be found at

Forward Looking Statements

Statements contained in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Terremark's actual results may differ materially from those set forth in the forward-looking statements due to a number of risks, uncertainties and other factors, as discussed in Terremark's filings with the SEC. These factors include, without limitation, uncertainty in the demand for Terremark's services or products and Terremark's ability to manage its growth. Terremark does not assume any obligation to update these forward-looking statements.

Non-GAAP Financial Measures

Terremark continues to provide all information required in accordance with generally accepted accounting principles (GAAP), but it believes that evaluating its ongoing operating results may be difficult if limited to reviewing only GAAP financial measures. Accordingly, Terremark uses non-GAAP financial measures, such as EBITDA, as adjusted. In presenting these non-GAAP financial measures, Terremark excludes certain non-cash items that it believes are not good indicators of the Company's current or future operating performance. These non-cash items are depreciation, amortization, stock-based compensation and impairments of long-lived assets.

EBITDA, as adjusted, is defined as loss from operations less depreciation, amortization, stock based compensation and long-lived asset impairments. EBITDA, as adjusted, should be considered in addition to, but not in lieu of, loss from operations reported under GAAP.

For further information on The Heiden Group, contact Brad Phillips at (703) 715-4992.

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