MSP ClearBlue Acquires Majority Position In NaviSite

NaviSite ClearBlue Technologies

CBT acquired HP Financial Services' $55 million convertible debt position and 3.2 million shares of NaviSite common stock, as well as CMGI's 76 percent equity share. CBT also bought warrants for 5.2 million shares of common stock and a $10 million convertible note from CMGI.

As part of the deal, HP Financial Services, a wholly owned subsidiary of Hewlett-Packard, will have a minority equity position in CBT as well as a CBT board position.

NaviSite, like many other companies in the MSP sector, has had its share of financial woes, posting a second-quarter loss of $26.8 million. In December 2001, then parent company CMGI and Compaq made a $65 million investment in NaviSite.

In May, the managed hosting provider unveiled a new channel program to engage midtier systems integrators and HP/Compaq solution providers.