Response Networks Acquires AperServ


Consolidation continues in the managed service provider space with Response Networks' acquisition of AperServ on Monday.

Both companies play in the service-level management space. Response Networks focuses on transaction performance management and monitoring the internal applications and networks of enterprise customers and xSPs.

AperServ, formed by brothers Greg and Tim Keough in the spring of last year, pinpoints network and application performance problems, drilling down to finite layers such as the time it takes a customer to log on through the time it takes to process a credit card.

AperServ also tracks the parameters of service-level agreements and automatically bills a solution provider if the parameters are violated.

Terms of the stock deal were not disclosed.

Greg Keough said customers were asking for the capability to monitor internal environments such as application and network performance, which led to talks with Response Networks.

A potential customer of both Response Networks and AperServ also encouraged the companies to merge.

"The customer, who we cannot name, referred to the merger as one plus one equals three," said Phil Hollow, vice president of product marketing for Response Networks, based here. "The customer, like us, saw that we had a similar outlook and vision."

Greg and Tim Keough will remain with Response Networks as senior vice president of channels and strategic accounts, and vice president of development and information systems in the Alexandria, Va., region, respectively. AperServ employees have already moved into Response Networks' Virginia office.

Current AperServ investors Walker Ventures, the Maryland Angels Council and Terra Lycos Ventures also invested an undisclosed amount in Response Networks.