TEMPE, Ariz. - On the heels of an announcement made Monday by CWIE Holding Company that it had finalized a purchase agreement with Internet service Provider AlphaRed Inc. to acquire all of its hosting assets, the company issued a statement Thursday stating that the deal did not go through as planned.
"The purchase of Alpha Red's assets could not be consummated notwithstanding considerable effort," the statement said, adding that no further comment would be made on why the deal fell through.
AlphaRed is in hot water over a lawsuit filed on Sept. 16 by Microsoft and the Washington State attorney general against the company's CEO James Reed McCreary IV, of The Woodlands, Texas, and two of his businesses. The formal complaint can be seen here.
McCreary was accused of five separate violations of the Consumer Protection Act and/or Washington State's Computer Spyware Act in the lawsuit.
Calls to AlphaRed were not immediately returned.
The CWIE purchase would have included the acquisition of AlphaRed's two privately owned datacenters in Houston, their 300 Gbps of Internet connectivity, as well as their connections in 16 carrier neutral facilities throughout the U.S.
CWIE is an information technologies services and applications provider, and is the parent company of CCBill and CaveCreek
AlphaRed has specialized in providing service to companies with bandwidth intensive Web applications and content distribution companies.
