On September 13, 2007, managed hosting provider NaviSite (navisite.com) announced it will acquire privately-owned applications management service provider netASPx for $40.5 million. The deal, which was expected to close by the end of September 12, includes approximately $15.5 million in cash and $25 million in convertible preferred stock.

The acquisition of the Herndon, Virginia-based company broadens NaviSite’s existing portfolio of applications management expertise, expands its customer base and strengthens its presence in the Midwest. The acquisition was financed through a $20 million addition to NaviSite's current senior term facility and the issuance of $25 million of series A convertible preferred stock, says the company. NaviSite shares increased by 25 cents, or 3.6 percent, to $7.30 yesterday morning.