Lotus Acquires Network Integration

On January 18, Lotus announced it will acquire Network Integration Technologies. This will help Lotus produce a range of products that have low IT demands, increasing their attraction to small and medium sized businesses.

Network Integration produces a very-low-overhead operating system, Nitix. This takes over the host machine, and either handles a lot of IT administrative work automatically, or makes the adminstrative tasks suitable for end users. It provides networking, collaboration, file and storage, and security services. Lotus will bundle versions of Lotus products with Nitix.

This purchase make sense. Small organizations find it hard to provide the IT support needed by systems like Notes/Domino and Exchange, and it holds back sales.

No information was given on the transaction. Network Integration is privately held and its financial data were not shared. However, the firm has 60 people. On a preliminary basis, we guesstimate:

  • A purchase price of $50M to $80M
  • Network Integration has a $15M/year revenue run rate

David Ferris--david.ferris@ferris.com--would welcome any further information on the deal or Network Integration's financials. Advice can be treated confidentially.

... David Ferris

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