Incentra Solutions (incentrasolutions.com), an IT and storage management solutions provider announced on August 20, 2007 that it has acquired IT and secure data center solutions provider Helio Solutions (heliosolutions.com) for approximately $10.3 million. The price paid at closing included $5 million in cash, six million restricted shares of Incentra common stock and the issuance of an unsecured, convertible three-year note for $770,000.

Based on meeting certain performance limits in each of the three years following closing, the sellers are eligible to receive additional consideration consisting of a combination of cash and restricted shares of Incentra common stock. The sellers have entered into a multi-year year lockup and voting agreement covering all Incentra common stock received in the transaction.

Helio Solutions had sales of approximately $75 million for the 12 months ended June 30, 2007. The company will become a wholly-owned subsidiary of Incentra Solutions and continue to operate from its offices in Santa Clara, San Jose, San Francisco and Los Angeles, California and Phoenix, Arizona. The acquisition will add a staff of approximately 60 professionals and more than 350 customers to Incentra's existing operations, while Dave Condensa will remain as Helio president with the business and report directly to Incentra Solutions president and COO Shawn O'Grady.

"Helio brings to Incentra experienced management and an excellent professional staff with a successful track record," said Sweeney. "With its large base of well established customers, it meets our strategic goal of providing significant opportunities to increase sales of our value added services including First Call and Enhanced First Call support services, professional services and our GridWorks remote monitoring and management system."