Large-scale web hosting and applications management company Exodus Communications Inc has signed a deal to acquire American Information Systems Inc, a Chicago-based regional provider of co- location, web hosting, and internet access and services to corporations. Exodus says the buy helps it accelerate its entry into the Midwest market, and expand its customer base as well as to give it added expertise in Windows NT. In conjunction with the acquisition, the company is preparing to launch its new Chicago metropolitan area Internet Data Center in March. Fifty-person AIS specializes in network engineering, customer service and internet systems development and will become a become a wholly-owned subsidiary of Exodus. The transaction will be accounted for as a purchase and is expected to close next week. No other financial details were disclosed. Separately, Exodus reported of $21.4m on revenue of $21.1m, compared with a net loss of $11.3m in the year-ago quarter. Results include an acquisition-related charge of $1.5m. For the year, the company reported a loss of $68.5m on revenue of $52.7m, compared to a loss of $26.7m on revenue of $12.4m for the prior year.
