December 09, 2003

By: Dora Clarke
Website: http://www.1st-in-web-hosting.com

Interland gains leadership in mass-market web solutions for small businesses by signing to acquire Trellix

Interland, Inc., the leading provider of business-class Web hosting services to small and medium businesses, today announced it has begun the implementation of its mass-market growth strategy with the acquisition of Trellix Corporation, the leading developer of software-based Web site solutions. The transaction consideration consists of $9.75 million in cash and stock plus warrants. In return for all the outstanding shares of the company, Trellix shareholders will receive $4.75 million in cash, three million shares of Interland stock, and a five-year option to purchase up to six million additional shares of Interland at a price of $5.00 per share. The transaction is expected to close within the next 30 days.

Earlier this year, Interland announced plans to develop a strategy to reach the small-business mass market. Based on industry analyst firm Yankee Group estimates, there are more than 20 million small businesses and home offices in the United States, and the vast majority of them do not have a professional or effective Web presence. “We believe that the addition of Trellix provides our company with, hands-down, the industry’s best technology foundation necessary to attack this huge mass-market opportunity,” said Joel J. Kocher, Interland chief executive officer.

“Through our mass-market strategy we are creating an opportunity to reach a much broader audience of small businesses – and one that no one else is reaching effectively. Interland will be able to offer a unique blend of service and technology by combining its market leadership and revolutionary blueHALO hosting platform with Trellix’s technology and significant distribution relationships,” said Kocher.

The current Web hosting market can be characterized as early adopter, generally more technically savvy than the average small-business owner, according to Yankee Group research analyst Helen Chan. “There is a very large market opportunity as most small businesses and home offices do not have a Web site,” said Chan. “By acquiring Trellix, Interland is poised to be a leader in both the early adopter market and the small-business mass market. This move will help broaden Interland from a Web hosting service company to a Web solutions provider for SMEs.”

Over the past five years, Trellix has developed an industry-leading set of Web solutions for small businesses to establish their Web presence and to grow their businesses. Trellix products have won multiple awards, and over four million Web sites have been built on its platform, including hundreds of thousands of small-business Web sites.

"This merger is a wonderful combination," said Trellix founder and chief technology officer Dan Bricklin. "Small businesses must have access to all of the online aspects of doing business today to find and serve their customers. Unlike big businesses, they have no data centers and no dedicated IT staff. They need someone else to do all this on their behalf. Together, we can provide software tailored to small-business needs, tightly integrated with facilities manned 24x7."

Trellix provides all the applications and services a small business needs to establish a highly successful online presence. Trellix offers an integrated suite of innovative tools including Web site publishing, online marketing, assisted site-building services and e-commerce. Trellix’s industry-leading technology includes a suite of building tools and hundreds of SME industry vertical templates and designs. These products provide a superior user experience, unmatched flexibility, power and ease-of-use.

“The traditional Web hosting market is littered with technical offerings that bewilder everyday small businesses,” said Don Bulens, CEO of Trellix. “As part of Interland, we will deliver the sensible, easy-to-manage solutions that these companies can use to succeed online.

About The Author:

Dora Clarke is a successful author and regular contributor to http://www.1st-in-web-hosting.com.  Promote your website by using affordable web hosting companies and services.