Exodus and Xcelera.com Partner to Enhance Internet Speed and Reliability

Strategic Insights -

Xcelera.com, an Internet holding company, has announced that its subsidiary, Mirror Image Internet, Inc., has completed a strategic investment deal with Exodus Communications, Inc., a leading provider of complex Internet hosting services. The partnership aims to deliver unparalleled speed, reliability, and security to Exodus's customers by deploying Mirror Image's patented Content Access Point (CAP) architecture throughout Exodus's Internet Data Center (IDC) network.

Key Takeaways:

  • Xcelera.com's subsidiary, Mirror Image Internet, Inc., has received a $75 million investment from Exodus Communications, Inc. in exchange for a 15% equity stake.
  • The deal values Mirror Image at $4.25 billion, with Xcelera and Mirror Image now owning approximately 2.0% equity stake in Exodus.
  • Mirror Image will use $50 million of the cash proceeds to complete its worldwide CAP network architecture, which is expected to be completed this year and available to more than 95% of all Internet users.
  • The partnership aims to deliver Internet content up to ten times faster and far less expensively than conventional methods.
  • Exodus will deploy Mirror Image CAPs throughout its IDC network, combining its secure, redundant network with Mirror Image's CAP infrastructure and technology.
  • The partnership is expected to enhance website performance for customers, consumers, and e-Business websites by delivering fast, reliable, and secure Internet content.
  • Xcelera.com's portfolio includes several Internet companies, including Mirror Image Internet, deo.com, and MNW Records.

Statistics:

  • 2,200 customers served by Exodus Communications, Inc.
  • Approximately 30% of all Internet traffic handled by Exodus.
  • $75 million investment from Exodus in Mirror Image Internet, Inc.
  • 3,758,268 Exodus common shares exchanged for 15% equity stake in Mirror Image.
  • Release date: April 26, 2000 (BUSINESS WIRE)
  • $637.5 million valuation of Mirror Image at the time of the agreement signing (March 22, 2000).
  • Expected completion of Mirror Image's worldwide CAP network architecture this year.

Sources:

  • BUSINESS WIRE. "Exodus To Use Mirror Image's Patented Fast Internet Content-Distribution Technology and Services; Xcelera.com To Use Part Of Cash Proceeds To Complete Mirror Image's Worldwide Network Build-Out," April 26, 2000, www.businesswire.com/news/home/19990426005126/en/Exodus-To-Use-Mirror-Images-Patented-Fast-Internet-Content.
  • BUSINESS WIRE. "Exodus Communications, Inc. - Overview of Business Unit," January 31, 1999, www.businesswire.com/news/home/19990131006659/en/Exodus-Communications-Inc-Overview-of-Business-Unit.