21Vianet Group, Inc. Acquires Fastweb
Expands CDN and Cloud Technology Capabilities
Appoints Fastweb CEO as Chief Software Officer
BEIJING, Sept. 20, 2012 (GLOBE NEWSWIRE) -- 21Vianet Group, Inc. (Nasdaq:VNET) ("21Vianet" or the "Company"), the largest carrier-neutral Internet data center services provider in China, today announced that the Company has acquired Fastweb International Holdings ("Fastweb"), a leading Internet content delivery network ("CDN") services provider in China.
In connection with the acquisition, Edward Liu, the Chief Executive Officer of Fastweb, will join 21Vianet as the Chief Software Officer. Mr. Liu will leverage his 25 years of software, Internet and CDN experience in both the U.S. and China, to oversee 21Vianet's cloud computing initiatives as well as business partnership strategies. Prior to Fastweb, Mr. Liu was the director of business development at Akamai Technologies, Inc. ("Akamai"), one of the world's leading CDN service providers. Earlier in his career, Mr. Liu served as vice president of research and strategy at Speedera Networks, a CDN company that was acquired by Akamai in 2005. Prior to Speedera, he was the technical co-founder of Resonate, a NASDAQ listed Internet load-balancing company in Silicon Valley.
"As China's largest carrier-neutral Internet data center services provider, the addition of Fastweb's expansive CDN footprint and cloud technology offerings presents a significant opportunity to further diversify and improve the quality and reliability of our services. By leveraging Fastweb's established expertise and capabilities, we will enhance our service offerings as well as cross-selling opportunities," commented Mr. Josh Chen, Founder, Chairman and Chief Executive Officer of 21Vianet. "In addition, we are very excited to have Edward join our team. His wealth of experience in working with global CDNs over the past 25 years is a welcome addition and will further help the development of our CDN and cloud computing capabilities."
With the acquisition of Fastweb, 21Vianet gains a large content delivery network with more than 150 points-of-presence, or POPs, located across China, Fastweb's proprietary CloudCDN platform software, as well as a portfolio of cloud enabling technology solutions. This product portfolio provides clients with a cost-effective solution to their data connection needs in China, improving the reliability, scalability, security and speed of their Internet services. Fastweb's strength is backed by its strong technical innovation in its self-developed CDN caching engine, back-end administrative BOSS system and customer service portal.
The total consideration for the acquisition was based upon 5 to 7.35 times the average of Fastweb's 2012 and 2013 EBITDA to be paid in a combination of equity and cash, in the aggregate amount not to exceed US$20 million.
21Vianet Group, Inc. is the largest carrier-neutral Internet data center services provider in China. 21Vianet provides hosting and related services, managed network services and cloud computing infrastructure services, improving the reliability, security and speed of its customers' Internet connections through 21Vianet's Internet infrastructure. Customers may locate their servers and networking equipment in 21Vianet's data centers and connect to China's Internet backbone through 21Vianet's extensive fiber optic network. In addition, 21Vianet's proprietary smart routing technology, BroadEx, enables customers' data to be delivered across the Internet in a faster and more reliable manner. 21Vianet operates in 33 cities throughout China, servicing a diversified and loyal base of more than 1,600 customers that span many industries ranging from Internet companies to government entities and blue-chip enterprises to small- to mid-sized enterprises.
Safe Harbor Statement
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CONTACT: Investor Relations Contact: ICR, Inc. Jeremy Peruski +1 (646) 405-4922 IR@21Vianet.com