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Intermedia Acquires Zlago

Microsoft Exchange hosting provider Intermedia on Tuesday said it has acquired Zlago, a provider of similar services as well as virtual servers and hosted desktops, for an undisclosed sum.

The move comes just weeks after New York-based Intermedia itself was acquired by private equity firm Oak Hill Partners. Zlago is based in Washington, D.C. but has a nationwide presence through a network of channel partners.

While Intermedia hosts 320,000 Exchange seats, the company is not revealing the number of seats hosted by Zlago.

In line with the acquisition, Zlago CEO Michael Gold is now president of Intermedia, reporting to its new CEO Phil Koen, who was a former CEO of Savvis. During an interview, Gold said Zlago will facilitate Intermedia's move to offering more virtualization services.

"Virtualization is a huge market opportunity," Gold said. "Virtualization is core to the cloud, so the services that Zlago offers to date and others will certainly be added."

Intermedia will transition Zlago customers and partners, Gold said. Among other things, the control panel used by Intermedia to administer all of its products and services will be made available to Zlago stakeholders, he noted. "Some services will move over faster than others," he said. "Obviously, Exchange customers would be easy to move over."

Among other things, the combined company offers hosted PBX, e-mail encryption and backup services.

Posted by Jeffrey Schwartz on 06/15/2011 at 1:14 PM


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