Internap Network Services Corporation, a provider of performance network services over the internet, has announced it has reached a definitive agreement to acquire VitalStream Holdings, Inc. VitalStream is a provider of audio and video streaming services and a global provider of integrated rich media content delivery services that enable businesses to broadcast digital media content to worldwide audiences via the internet.
Under the terms of the transaction, Internap will issue approximately 11.9 million shares of common stock in respect of outstanding VitalStream common shares, which will represent approximately 26% of the combined company's shares. In addition, Internap will assume VitalStream's currently outstanding stock option plans. Based on the closing price of Internap's stock on October 11, 2006, the transaction is valued at an aggregate purchase price of approximately $217 million. The acquisition is expected to close by the first quarter of 2007.