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The End of a Year - December 2007 Hosting M&A

Fri, 04 Jan 2008 23:55:00 -0400

Some M&A info from the NCC files for December 2007 - Not all inclusive but interesting...

Madrid, Spain - Private equity firms The Carlyle Group and Mercapital acquired Spanish Web hosting and domain registrar Arsys (arsys.net) for about $230 million. 550,000 domains registered, 170,000 customers and 250 employees.

San Francisco, CA - Digital Realty Trust acquired two European data centers; Cressex 1 in London, England 51,000 sq/ft and Naritaweg 52 in Amsterdam, Netherlands - 63,000 sq/ft.

San Mateo, CA - Garnett & Helfrich Capital purchased MTI Europe in a court-supervised auction. MTI offers the managed services, data storage, protection and collocation services.

Montreal, Canada - HostingDiscussion.com acquired and merged with HostingRefuge.com and TalkWebHosts.com

Macomb, IL - McDonough Telephone Cooperative (MDTC) acquiring Infobahn Outfitters a web hosting and web design company.

Suwanee, GA — Quality Technology Services, a provider of data center and managed services, acquired the customer base of First National Technology Solutions in Kansas City. QualityTech will boost its annual revenues over $100 million with the deal.

Lancashire UK - Red Fox Hosting acquired AGUK Hosting, managed and exchange hosting services

Herndon, VA - SWsoft acquired WebHost Automation Ltd. (Bristol, U.K.) maker of the Helm control panel and billing software for Windows - 1.5 million worldwide end users.

London, UK - UK-2 Group, Ltd acquired Dan Ushman’s Chicago based midPhase Services Inc.’s shared and VPS businesses. Dan keeps his fingers in the pie as he works his way up the food chain - why? UK-2 will collocate the acquired assets at SingleHop, Inc, a company owned and operated by Zak Boca and Dan Ushman. (High 5 on that one!)

My favorite acquisition of the month:
Chatswood NSW Australia - Broadcast Australia entered into an agreement to acquire Hostworks Group Limited a full service dedicated/managed colo company in a $68.9 million transaction. Each firm’s competencies complement each other – actually/really – synergistic - Check out the links to see what I mean. This is a great marriage – also the deal is a 37% premium to the latest closing price of Hostworks shares.

The UK and its past and related domains were busy in December.

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The other obvious precaution that you will need to observe at all times for your hosting site is to avoid using public computers when you are away, to sign in to your site and other sensitive accounts. It pays to think of your online security all the time - even if you are not a web hosting provider.

Eleven2 Hosting Relocates HQ

Wed, 07 May 2008 00:00:00 EST
May 7, 2008 -- ( <http://www.thewhir.com> WEB HOST INDUSTRY REVIEW) -- Web hosting provider Eleven2 Hosting announced this week that it has officially relocated to its new, headquarters in Spring, Texas.

1&1 Partners with Open-Xchange, but are They Competing with Microsoft or Google?

Mon, 26 Feb 2007 22:14:00 -0400

BusinessWeek reports that 1&1 will soon start deploying Open-Xchange mailboxes in Germany, followed by rollouts in the US, Britain and France. The article reports that 1&1 manages 5 million email accounts on behalf of 2.7 million web hosting customers. (This is wildly inconsistent with the 6 million hosting customers and 65 million emails accounts in 1&1's Business 2.0 ad. Maybe these figures include users from 1&1 parent company United Internet's Web.de and GMX portals business?)

With Open-Xchange's open source solution, 1&1 will be able to offer Microsoft Exchange-like features for $5 per user per month, versus its $10-$15 $6.99 current price. BusinessWeek says this is "nothing but bad news" for Microsoft, but are Microsoft and Open-Xchange competing with each other? Or should both be worried that end users like Steve Rubel are turning Gmail into their personal nerve centers?

Steve is a senior VP at Edelman PR, an enormous organization that no doubt has an industrial strength email system, but Steve is hooked on Gmail because:

"Everyday I come across something on the web that I want to save for future reference... since I travel a lot, I need to access my bits from a mobile device. The latest version of the Google Toolbar has a send to Gmail function. Select some text or graphics, right click on it and send it to Gmail... Whammo - an instant personal database."

A friend who works at Microsoft says he can use his Windows Mobile phone to search his Exchange archive as well. But 10 GB Gmail accounts are available for $4.17 each per month (mobile client, website builder and web-based word processor and spreadsheet included). That's a 10x larger personal database compared with 1&1's 1GB allocation (Outlook 2003 and free domain name included).

Another important question is, to what extent will 1&1 be able to drive Open-Xchange adoption? Yes, as the world's largest hosting provider, 1&1 can deliver an enormous audience. But seeing is *not* deploying. As a point of reference, when I switched from (POP mail + Outlook + Blackberry) to (Google Apps + Gmail mobile) last week, I realized that despite the conveniently-located Google Start Page icon on my control panel, I still like Netvibes better. But thanks to the Gmail and Google Calendar widgets on Netvibes, I was able to piece together a best of all worlds solution.

If I were 1&1 CEO Andreas Gauger, I would think along the same lines and open up my community and technology platform.
Customer A might prefer Gmail + 1&1's website builder, while Customer B might choose Open-Xchange mail + Google Pages. Why not use widgets, RSS and open APIs to help each user concoct his perfect combination?

Renton, Washington - (The Hosting News) - May 5, 2008 - Server virtualization firm, Parallels’ Virtuozzo Containers, have been chosen to power managed hosting provider, Liquid Web’s new Microsoft Windows virtual private server (VPS) offering.

In April, Eleven2 Hosting expanded its corporate management team, through an appointment of a new Customer Service Director, Cory Beavers, a hosting industry veteran.

Established in 1997, Host Department is based in Wilmington, DE with data centers located in Fremont and Santa Clara, CA. Host Department emphasizes service to individuals, small / medium sized businesses (SMBs), and large corporations, designed for e-commerce. The company is currently serving over 550,000 customers worldwide with reseller / premium / specialty / free web hosting and domain name registration services supported by an unwavering commitment to 24/7 support. The company also offers web design and development services, as well as search engine submission.

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