ATLANTA, Aug. 2, 2011 /PRNewswire/ -- EarthLink, Inc.
(NASDAQ: ELNK), a leading IP infrastructure and services company,
completed its acquisition of Business Vitals, a national provider
of managed information technology (IT), security and professional
services based in Columbia, South
Carolina. Financial terms of the transaction were not
disclosed. The acquisition provides EarthLink with an additional
Tier IV secure data center connected to its fiber network, a fully
redundant Security Operations Center (SOC) and a broad set of
security-centric IT outsourcing solutions.
With Business Vitals, EarthLink will enable clients to focus on
core business issues by outsourcing the management of a broad range
of IT operations, infrastructure and systems. Business Vitals
brings to EarthLink additional IT security and professional
services capabilities currently provided to businesses in the
financial, retail, legal, engineering, manufacturing and healthcare
industries as well as universities and government agencies. As a
SAS70 Type II tested operation, Business Vitals supports clients in
35 states and 10 countries.
Combined with its recently launched EarthLink Cloud™ and
existing managed services, this acquisition will allow EarthLink to
rapidly offer a full range of secure IT solutions to business
customers through its newly formed Premier, National, and partner
distribution channels. The new Tier IV data center is connected to
the EarthLink fiber network and to its other on-net regional data
centers to provide cloud and disaster recovery services. These
services will be supported by certified engineers in EarthLink's
Security Operations Center, IT Solutions Center, and Network
Operations Centers.
"EarthLink is building a full range of managed IT services that
focus on security as a key capability," said Brian Fink, EarthLink Executive Vice President
of Managed Services. "Business Vitals is an important extension of
our managed services portfolio, and we will be actively leveraging
the assets, capabilities and proven expertise we have acquired to
enhance our national managed services business."
Jeff Brewer, Chief Executive
Officer of Business Vitals, joins EarthLink as Vice President of IT
Solutions and Security. "Business Vitals has built a premier IT
managed security services and IT risk management firm with a strong
customer base. We are pleased to become part of EarthLink, which
translates into more and better options for current and future
clients," added Brewer.
About EarthLink
EarthLink, Inc. (NASDAQ: ELNK) is a leading provider of Internet
Protocol (IP) infrastructure and services to medium-sized and large
businesses, enterprise customers, and over 1.6 million customer
relationships across the United
States. The company has provided Internet access and
communications services for decades and has earned an award-winning
reputation for both outstanding customer service and product
innovation. Its EarthLink Business™ division provides a full
complement of voice, data, mobile, cloud hosting and equipment
services over a 28,000 mile fiber network and MPLS-based services
nationwide. EarthLink Consumer is a leading Internet Service
Provider connecting people to the power and possibilities of the
Internet. For more information, visit EarthLink's website
www.earthlink.net
Cautionary Information Regarding Forward-Looking
Statements
This press release includes "forward-looking" statements (rather
than historical facts) that are subject to risks and uncertainties
that could cause actual results to differ materially from those
described. Although we believe that the expectations expressed in
these forward-looking statements are reasonable, we cannot promise
that our expectations will turn out to be correct. Our actual
results could be materially different from and worse than our
expectations. With respect to such forward-looking statements, we
seek the protections afforded by the Private Securities Litigation
Reform Act of 1995. These risks include (1) that we may not be able
to execute our business strategy to transition to a leading IP
infrastructure and managed services provider, which could adversely
impact our results of operations and cash flows; (2) that we may be
unsuccessful in making and integrating acquisitions into our
business, which could result in operating difficulties, losses and
other adverse consequences; (3) that the continuing effects of
adverse economic conditions could harm our business; (4) that if we
do not continue to innovate and provide products and services that
are useful to individual subscribers and business customers, we may
not remain competitive, and our revenues and operating results
could suffer; (5) that our failure to implement cost reduction
initiatives will adversely affect our results of operations; (6)
that we will require a significant amount of cash, which may not be
available to us, to service our debt and fund our other liquidity
needs; (7) that we face significant competition in the Internet
industry that could reduce our profitability; (8) that our consumer
business is dependent on the availability of third-party network
service providers; (9) that the continued decline of our consumer
access subscribers, combined with the change in mix of our consumer
access base from narrowband to broadband, will adversely affect our
results of operations; (10) that our commercial and alliance
arrangements may not be renewed or may not generate expected
benefits, which could adversely affect our results of operations;
(11) that privacy concerns relating to our business could damage
our reputation and deter current and potential users from using our
services; (12) that changes in technology in the Internet access
industry could cause a decline in our business; (13) that we face
significant competition in the communications industry that could
reduce our profitability; (14) that decisions by the Federal
Communications Commission relieving ILECs of certain
regulatory requirements, and possible further deregulation in the
future, may restrict our ability to provide services and may
increase the costs we incur to provide these services; (15) that
our wholesale services, including our broadband transport services,
will be adversely affected by pricing pressure, network
overcapacity, service cancellations and other factors; (16) that
our operating performance will suffer if we are not offered
competitive rates for the access services we need to provide our
long distance services; (17) that we may experience reductions in
switched access and reciprocal compensation revenue; (18) that our
inability to maintain our network infrastructure, portions of which
we do not own, could adversely affect our operating results; (19)
that if we are unable to interconnect with AT&T, Verizon and
other incumbent carriers on acceptable terms, our ability to offer
competitively priced local telephone services will be adversely
affected; (20) that we may not be able to compete effectively if we
are unable to install additional network equipment or convert our
network to more advanced technology; (21) that failure to obtain
and maintain necessary permits and rights-of-way could interfere
with our network infrastructure and operations; (22) that we may be
unable to retain sufficient qualified personnel, and the loss of
any of our key executive officers could adversely affect us; (23)
that interruption or failure of our network and information systems
and other technologies could impair our ability to provide our
services, which could damage our reputation and harm our operating
results; (24) that our business depends on effective business
support systems and processes; (25) that government regulations
could adversely affect our business or force us to change our
business practices; (26) that our business may suffer if third
parties used for customer service and technical support and certain
billing services are unable to provide these services or terminate
their relationships with us; (27) that we may not be able to
protect our intellectual property; (28) that we may be accused of
infringing upon the intellectual property rights of third parties,
which is costly to defend and could limit our ability to use
certain technologies in the future; (29) that if we, or other
industry participants, are unable to successfully defend against
legal actions, we could face substantial liabilities or suffer harm
to our financial and operational prospects; (30) that we may be
required to recognize additional impairment charges on our goodwill
and intangible assets, which would adversely affect our results of
operations and financial position; (31) that we may have to
undertake further restructuring plans that would require additional
charges, including incurring facility exit and restructuring
charges; (32) that we may have exposure to greater than anticipated
tax liabilities and the use of our net operating losses and certain
other tax attributes could be limited in the future; (33) that we
may reduce, or cease payment of, quarterly cash dividends; (34)
that our stock price may be volatile; (35) that our indebtedness
could adversely affect our financial health and limit our ability
to react to changes in our industry; and (36) that provisions of
our second restated certificate of incorporation, amended and
restated bylaws and other elements of our capital structure could
limit our share price and delay a change of management. These risks
and uncertainties, as well as other risks and uncertainties that
could cause our actual results to differ significantly from
management's expectations, are not intended to represent a complete
list of all risks and uncertainties inherent in our business, and
should be read in conjunction with the more detailed cautionary
statements and risk factors included in our Annual Report on Form
10-K for the year ended December 31,
2010.
SOURCE EarthLink, Inc.