Intermedia Acquires Zlago

Intermedia distributes cloud services to 38,000 small and mid-size business clients directly and through its 6,800 global channel partners. The company manages an industry-leading 320,000 premium hosted Exchange mailboxes. According to Phil Koen, CEO, Intermedia, "The Zlago acquisition will not only extend the level of cloud expertise within Intermedia, however it will as well prove to be a catalyst for strategic growth within the Intermedia cloud services portfolio. Intermedia gains Michael Gold's management, cloud, and channel expertise -- as then as important Zlago resources, just as deep relationships in the channel community. With Oak Hill's resources behind Intermedia, we intend to build the leading provider of cloud services."

"Intermedia's products and channel programs are widely viewed as best in class," says Michael Gold, president, Intermedia. "I am pleased to bring their superior 24x7 support, complimentary migration to the cloud, innovative innovation, and always-on operations to Zlago's partners. My focus at Intermedia will be on continuing to improve that industry-leading experience and extending it to an even broader set of cloud services. We have a great tradition to build on given Intermedia's track record delivering enterprise-grade hosted Exchange -- and recent additions just as hosted PBX (Private -Automatic- Branch Exchange), email encryption, and backup."

Robert Morse, a partner at Oak Hill Capital, adds, "Cloud services are poised for mass adoption, with their cost and productivity benefits far outpacing those available from traditional on-premise computing. The Zlago acquisition and addition of Michael Gold to the management team will help Intermedia continue to accelerate this shift to the cloud. We look forward to working with Phil Koen, Michael Gold, and the rest of the Intermedia management team."

Service delivery to Zlago's clients and nationwide network of channel partners will continue uninterrupted. According to Steve Harper, president/CEO of managed service provider NMGI, "Having been in business over 25 years as a VAR and managed service provider, we've built solutions and resold software from dozens of vendor providers. As one of those providers, Zlago has set itself apart by doing many things very so then, with two items in particular that in effect stand out. First, they simplify the delivery of a variety of cloud services to our small and mid-size clients. And second, they have positioned and empowered NMGI as a reseller to build real, significant, and sustainable pieces of new business. We signed on as Zlago's first partner because of their vision, drive, passion, and commitment. We are excited to see that Intermedia's approach to the reseller community is similar. Our relationship will continue to grow with Intermedia."

Gold brings over 15 years of senior management experience in cloud services and channel development to Intermedia. Prior to Zlago, he was CEO of Sphera, a cloud services software company that he sold to cloud automation provider Parallels, where he served as a senior vice president. Gold has held a variety of other executive roles in the industry, including CEO of software company Vicorp and senior vice president of Qwest Communications, where he had P&L responsibility for the Internet Products business and launched Qwest's CyberCenter datacenter and hosting business. Long dedicated to the channel community that supports small and mid-size businesses, Gold was named one of the 25 most innovative executives by CRN and Everything Channel in 2009 and 2010.

The premier provider of cloud services to small

ABOUT INTERMEDIA Intermedia is the premier provider of cloud services to small and mid-sized businesses. Delivered from Intermedia's secure datacenters, these services include hosted Microsoft Exchange email, VoIP (Voice over Internet Protocol) telephony, instant messaging, file management, security, backup, support for the full range of smartphones and tablets, and more. The company's proprietary cloud infrastructure assures high reliability, and a certified support team is available around the clock. Intermedia as well empowers thousands of partners -- including managed service providers and select Fortune 500 companies -- to sell cloud services in accordance with their own brand. Founded in 1995, Intermedia was the first company to offer business-class cloud email and now has 320,000 premium hosted Exchange mailboxes in accordance with management -- more than any other provider. For more information, visit www.intermedia.net.