PURCHASES VIDEO SERVICES DIVISION OF NET2000 for $3.5 MILLION;
INVESTOR CITES 'UPSURGE' IN DEMAND FOR VIDEO CONFERENCING
JOSE, CA, and WASHINGTON, D.C. PRNEWSWIRE
Nov. 19, 2001 VSGi (Visual Systems Group, Inc.),
a company formed by Venturehouse Group and management, has
purchased the video services division of Net2000 Communications,
Inc. (NASDAQ: NTKK - news) for $3.5 million in cash.
based in San Jose, California, is a leading provider of
integrated videoconferencing, data, and network services
to corporate and government customers, including dozens
of Fortune 500 companies such as MGM, Morgan Stanley, 3M
and Walt Disney.
transaction was announced by Randy Harrell, former President
of the Net2000 video services division, who will lead VSGi,
and by Mark Ein, Founder and CEO ofVenturehouse Group, a
Washington, D.C.-based investment firm that creates, invests
in and acquires technology companies.
management team seized an opportunity to take a promising
division of Net2000, connect with a smart partner, and use
this period of increasing demand for video conferencing
services to position VSGi for even greater growth in the
months to come,'' said Randy Harrell. "Our aggressive
expansion plans include a broader sales presence, additional
video and telecom services and new software applications
to expand and improve the video conference experience for
our customers. We appreciate the support that we received
while part of Net2000, but now look forward to prospering
as an independent company.''
Group, known primarily for its early stage investments in
companies such as Matrics Technologies and XM Satellite
Radio, provided the financing. Its principals have previously
been involved in the early stages of many successful companies
including Aether Systems and American Tower Corporation.
a time when business travel is more complicated, more costly,
and more time consuming, there is an upsurge in demand for
video conferencing services offered by companies like VSGi,''
said Mark Ein. "We made this investment, because VSGi
is an established company, with real customers, real revenues,
and really solid prospects for future growth in its core
business and in new services areas. We are going to apply
the same growth oriented strategies that we use with our
start-up companies to leverage VSGi's platform and presence
in this promising industry."
November 15th, 2001, Net2000 announced that it has filed
a voluntary petition with the U.S. Bankruptcy Court in Delaware
for reorganization under Chapter 11 of the U.S. Bankruptcy
Code. The sale to VSGi is taking place outside the scope
of the voluntary Chapter 11 petition.
Venturehouse Group is an investment firm that creates, acquires,
and invests in technology and telecommunications companies.
The firm's strategy is to work closely with its portfolio
companies to provide operational, strategic, and financing
support throughout their lifecycle. Located in Washington,
D.C., the firm was founded in 1999 and is backed by several
leaders in the region's technology and telecommunications
industry. For more information about Venturehouse Group