Loudcloud and Frontera Sign Definitive Acquisition Agreement
February 28, 2002
Sunnyvale, Calif., February 28, 2002 -- Loudcloud, Inc. (NASDAQ: LDCL), the leading managed services provider, today announced that it has signed a definitive agreement to acquire Frontera Corporation, a privately-held managed services provider located in Los Angeles, California. Frontera's customers include Pioneer Electronics, Conseco, Wherehouse Music and Coach, Inc.
Pursuant to the agreement, Loudcloud will acquire Frontera in an all-stock transaction. Completion of the transaction is subject to customary closing conditions, including Frontera stockholder approval and regulatory approvals. The transaction is expected to close in the second quarter of 2002.
"We think this is an excellent fit for our business, as these customers can be readily integrated into our environment," said Ben Horowitz, CEO of Loudcloud. "Loudcloud's strategy is to execute against our business plan. This acquisition complements it perfectly, because it allows us to add high quality customers, strengthens Loudcloud's regional presence, and provides operational synergies."
Loudcloud's management team will discuss the transaction on the company's 2002 fourth quarter and full year results earnings call scheduled for today, Thursday, February 28, 2002, beginning at 2 p.m. PST. A live audio version of the conference call is available on the Investor Relations section of Loudcloud's Web site at http://www.loudcloud.com/ir. A playback of the conference call can be accessed by dialing 719/457-0820 and entering pass code #796114 beginning at 7 p.m. PST on February 28 and running until 8 p.m. PST on March 8, 2002.
Loudcloud is the leading managed services provider, offering a complete solution to enterprise customers for outsourcing global Internet operations. Loudcloud deploys, manages, secures, scales, and monitors e-business systems using its unique Opsware technology, which automates functions otherwise done manually, delivering higher quality, cost savings, and increased flexibility. Loudcloud manages its systems via a worldwide network of data centers and Loudcloud Operations Centers located in North America and Europe. For more information on Loudcloud, please visit our Web site at www.loudcloud.com.
About Frontera Corporation
Frontera, a full service managed service provider, offers cost-effective, mission-critical applications via a hosted model. The company's expertise encompasses the entire application lifecycle - from design and development through implementation, hosting and management. For more information, please visit http://www.fronteracorp.com/.
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