Exodus Communications Inc. (Nasdaq: EXDS) said Wednesday it will buy Service Metrics, Inc. for $280 million in stock.
Shares in the Internet hosting and services company sank 2 1/16 to 75 1/16, or 3 percent.
Exodus manages Internet Web sites and its network infrastructure from 15 Internet Data Centers (IDCs) across the U.S. and Europe. The acquisition of Service Metrics will strengthen Exodus' customer service. Service Metrics provides Internet monitoring applications and services that measure the consistency and performance of web sites.
Service Metrics will become a wholly owned subsidiary of Exodus. The transaction should close in December 1999, and the acquisition will be accounted for under the pooling of interest accounting treatment.