The coronavirus pandemic has all but stopped a lot of service activity, but today comes news of a deal that highlights&how M&A is still taking place in some sectors despite (not since of) whatever else going on. One.com– the huge hosting company in Europe with around 1.5 million clients, itself obtained simply over a year ago by PE company Cinven– has actually gotten Hostnet, a smaller sized Netherlands-based rival with about 210,000 customers. Financial terms of the deal are not being divulged but a representative for One.com stated that it includes all of Hostnet’s existing organisation– that includes management of 810,000 domain names and 85,000 websites; domain registration, webhosting and SaaS applications services; and handled and virtual private services– and its existing workers. The spokesperson added that the deal has
remained in the works for a number of weeks and closed in the last number of weeks, with the groups “overcoming the coronavirus pandemic”to finalise it.” We are delighted to
announce the acquisition of Hostnet provided its focus on functional quality and high brand name awareness,”said Stephan Wolfram, Group CEO of One.com, in a statement. “As an outcome of this transaction, we are now a leading operator in the Dutch hosting market that is core to the development of our organisation technique. We eagerly anticipate dealing with the team at Hostnet and considerably improving our European existence and product range for our consumers.”You may question if Hostnet and One.com are being impacted
by the pandemic– particularly, whether the reality that both count small companies, which have been a few of the hardest-hit in terms of operations, as a primary customer base, and whether that is impacting their own bottom line or leading to payment delinquency. This might well be a consider the months to come, but the spokesperson stated that this was not a consider this offer or in the monetary terms. There is some data to support the idea that consolidation
is a bigger trend. The consolidation of numerous smaller hosting companies has been a theme for a while now, with business trying to find more economies of scale.”Hostnet is an extremely regarded player in the hosting market with capabilities, awareness and products that will add to further speed up the development of one.com’s business,”Harold Douwes, creator and CEO of Hostnet, stated in a statement.” Within the combining hosting market, it was important for Hostnet to get in touch with a strong partner. We found it in one.com, an ambitious celebration with a great deal of understanding and experience. This uses plenty of possibilities and chances for the future.”As we have actually pointed out before, web hosting and related services represent a considerable, if not hugely progressing,
part of the tech landscape. For as long as consumers and services continue to use the web– and, as everybody is staying at home, we have actually had even more web traffic of late than ever– there will be a requirement for companies who offer and host domain and offer different cloud services around that. Given that there is a lot of competitors in this space, that indicates rates are competitive to clients, and that, in turn, also suggests that margins, particularly in the resale of SaaS tools, are low. In other words, we’re most likely to see more combination in this location over time. Now backed by Cinven, One.com itself has actually been pursuing that strategy over the last year. Its other acquisitions have consisted of other regional leaders such as SYSE and Digital Garden in the nordics . Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.