The coronavirus pandemic has all however halted a whole lot of enterprise exercise, however as we speak comes information of a deal that underscores how M&A remains to be taking place in some sectors regardless of (not due to) every thing else occurring. One.com — the large internet hosting supplier in Europe with round 1.5 million clients, itself acquired just over a year ago by PE firm Cinven — has acquired Hostnet, a smaller Netherlands-based competitor with about 210,000 clients.
Monetary phrases of the deal aren’t being disclosed however a spokesperson for One.com mentioned that it consists of all of Hostnet’s present enterprise — which incorporates administration of 810,000 domains and 85,000 web sites; area registration, hosting and SaaS functions companies; and managed and digital personal companies — and its present staff.
The spokesperson added that the deal has been within the works for a number of weeks and closed within the final couple of weeks, with the groups “working by means of the coronavirus pandemic” to finalise it.
“We’re happy to announce the acquisition of Hostnet given its give attention to operational excellence and excessive model consciousness,” mentioned Stephan Wolfram, Group CEO of One.com, in a press release. “Because of this transaction, we at the moment are a number one operator within the Dutch internet hosting market that’s core to the event of our enterprise technique. We sit up for working with the staff at Hostnet and considerably enhancing our European presence and product vary for our clients.”
You may surprise if Hostnet and One.com are being impacted by the pandemic — particularly, whether or not the truth that each rely small companies, which have been a number of the hardest-hit by way of operations, as a main buyer base, and whether or not that’s impacting their very own backside line or resulting in cost delinquency. The spokesperson mentioned that this was not an element on this deal or within the monetary phrases.
There’s some knowledge to help that: the consolidation of a number of smaller internet hosting suppliers has been a theme for some time now, with corporations in search of extra economies of scale.
“Hostnet is a extremely regarded participant within the internet hosting market with capabilities, consciousness and merchandise that may contribute to additional speed up the event of one.com’s enterprise,” Harold Douwes, founder and CEO of Hostnet, mentioned in a press release. “Inside the consolidating internet hosting market, it was vital for Hostnet to attach with a robust companion. We discovered it in one.com, an bold occasion with a whole lot of data and expertise. This affords loads of prospects and alternatives for the long run.”
As we have now identified earlier than, hosting and associated companies symbolize a major, if not wildly evolving, a part of the tech panorama. So, for so long as companies and shoppers proceed to make use of the net — and, as everyone seems to be staying at house, we have now had much more internet site visitors of late than ever — there will probably be a necessity for corporations who promote and host domains and supply varied cloud companies round that.
However since there is a whole lot of competitors on this area, meaning costs are aggressive to clients, and that, in flip, additionally signifies that margins, notably within the resale of SaaS instruments, are low. In different phrases, we’re more likely to see extra consolidation on this space over time.
Now backed by Cinven, One.com itself has been pursuing that technique during the last yr. Its different acquisitions have included different regional leaders resembling SYSE and Digital Garden within the nordics.