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Verio to be America Online’s exclusive Web-hosting provider

SHARE Verio to be America Online’s exclusive Web-hosting provider

ENGLEWOOD, Colo. (Dow Jones News) -- Internet-service provider Verio Inc. will pay America Online Inc. a minimum of $42.5 million to become AOL's exclusive business Web host provider.

America Online, the world's largest online services company, also will get a share of future revenue from the deal which includes a co-branded Verio and AOL Web site that will offer Verio Web-hosting and Internet commerce products and services, the companies said Thursday. Verio will receive online advertising and promotion of the venture.The agreement includes America Online's CompuServe, AOL.com and Digital City and America Online services. Almost 7,000 AOL PrimeHost and CompuServe BusinessWeb hosting customers will now get Web hosting services from Verio, the companies said.

Verio, based in Englewood, Colo., provides Web-hosting and other Internet services to small and mid-sized businesses. It has 12-month revenue of $120.6 million.

America Online, based in Dulles, Va., has 16 million subscribers and 12-month revenue of $3.3 billion.