Dell Invests in NaviSite, Inks Co-Marketing Agreement

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Computer direct marketer Dell Computer Corp., Round Rock, TX, acquired a 4.9-percent stake in NaviSite Inc., Andover, MA, which manages Web sites for small and medium-sized businesses and rents software to them via the Internet.


The nonexclusive agreement makes Dell a preferred provider of servers, storage technology and personal computers for NaviSite, which uses several Dell machines to host and maintain Web sites for its clients. The agreement also calls for the two companies to co-market their products to businesses.


Meanwhile, software giant Microsoft Corp., Redmond, WA, acquired a 4.4-percent stake in NaviSite, which has agreed to develop and promote streaming media services that are compatible with Microsoft's Windows Media Technologies.


The financial terms of the agreements were not disclosed. NaviSite is majority owned by venture capital firm CMGI, which has stakes in several Internet-related businesses.


Dell's investment follows an investment in CMGI last month by computer direct marketer Gateway Inc., North Sioux City, SD.
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