Internap to Acquire VitalStream

Combination Will Unite Performance Network Services  Provider with Video Streaming and Content Monetization  Leader
(...) Internap will issue approximately 11.9 million shares of common stock in respect  of outstanding VitalStream common shares, which will represent approximately 26%  of the combined company's shares. (...)The transaction is valued at an  aggregate purchase price of approximately $217 million. (...) The combined company will result  in:  Internap  holding a market leadership position delivering streaming media content; Internap's  ability to access the high-growth streaming media and on-line advertising  segments; The  strongest, most complete product line in content delivery solutions, content  monetization, and on-line advertising; Significant  new organic growth potential coupled with cross selling opportunities.
(...) By  combining the two companies' product lines, Internap will be able to meet the  needs of customers seeking to both deliver rich media content to their users and  monetize that content. The combination of VitalStream's content delivery  services, content management tools and particular expertise in Adobe (formerly  Macromedia) Flash technology, with Internap's high performance route management  network, will enable the new organization to easily address the needs of  enterprises seeking to deliver large format media files in a streamed  environment. The combined offering will be the strongest and most comprehensive  available in the industry today.

(Source: YahooBiz)