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Digital Island leaps on deal
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December 8, 1999: 9:10 a.m. ET
Sun Micro takes minority stake, Inktomi adds to e-commerce company holding
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NEW YORK (CNNfn) - Shares in Digital Island Inc., a provider of e-commerce services to businesses, skyrocketed Wednesday after the company announced the taking of a minority stake by Sun Microsystems and the increase in Inktomi’s investment in the company through an pending merger partner.
Financial terms of the investments weren’t disclosed.
Shares in Digital Jam rose 45-5/16 to 114 15/16 in regular trading Wednesday - a climb of 65 percent.
Digital Island (ISLD) also announced it will purchase $150 million of Sun Microsystems Web servers equipped with Inktomi’s Internet infrastructure software.
Sun Microsystems (SUNW) will take a minority stake in Digital Island through its investment portfolio. Inktomi (INKT) is adding to the stake it holds in Sandpiper Networks, which agreed to merge with Digital Island in October.
By incorporating Sun and Inktomi’s technology, Digital Island said bottlenecks in the network backbone will be reduced and keep costs down. The company also expects to attract and retain new subscribers by speeding up its service.
"The innovative network services that our alliance brings to the Internet allows corporations to rapidly deliver content and conduct secure transactions in order to excel at all facets of e-business," said Ruann F. Ernst, president and CEO of Digital Island.
Sun rose 9 percent to 78 7/16 Wednesday. Shares of Inktomi climbed 3 percent to 168. 
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