Acquisition Dutch hosting company

• The acquired company is a small hosting company located in the Netherlands
• The company that was bought has revenues of less than 1 million euros
• The buyer is an international hosting group that buys hosting companies
• CFIE business acquisition input: The CFIE M&A team member, Govert Derks searched for the target company and did the first screening. This acquisition is an important addition to the acquirer’s group of companies. The hosting buyer is looking to grow via the purchase of hosting portfolios globally.

The acquired company focuses on hosting and other related IT services. The hosting portfolio had been built up over a long period but had no current strategic focus. Hence, the owner of the hosting portfolio was open to selling this hosting portfolio. The seller now focuses on its core activity which is IT services to SME companies in the Netherlands.

The buyer is a midsize international hosting company. Several years after being established in Argentina, a new hosting company, Connaxis hosting S.A, was set up. This company has grown steadily and gradually mainly via the acquisition of small and midsize hosting portfolios. Here are some of the characteristics of this international hosting company’s acquisition strategy:

• Focus on the acquisition of small and medium-sized hosting companies
• Integrate the hosting portfolios into the current business of its own hosting company
• Provide high-quality service to the client portfolio so the actual churn rate is minimal
• Achieve high gross margins due to the elimination of all possible costs after the acquisition

The CFIE hosting M&A team helps hosting company buyers in acquisitions. In this case, the work done is mainly upfront. The work consists of sourcing the right targets for acquisition. The CFIE hosting M&A team sees the importance of an efficient hosting industry. The growth of the hosting industry has declined significantly and many portfolios are lying idle. We believe it is most efficient for hosting owners to sell the portfolio and focus on other activities. The CFIE hosting M&A team has good direct contact with hosting business owners and can support sellers in the sale of smaller hosting portfolios.

Govert Derks looked for the target hosting company and explained the buyer’s strategy. After initiating talks and negotiations between the target hosting company and the buyer, CFIE facilitated contact with the hosting buyer. The buyer had practical experience in the process of acquisitions of international hosting companies and worked independently on the further process.

• Both companies are active in the hosting industry and the management of the hosting portfolio can be more effectively done by the new buyer
• The target company has a focus on ICT related activities and will get more time for core activities
• The international hosting buyer can invest further in client support

Feel free to contact us for further details about this hosting acquisition. If you are looking for acquisitions or business sales of hosting companies in other European countries, do contact us. We know many available hosting targets across Europe and would be able to find the ones that suit you. Please get in touch via the contact form on the right side of this page so we can explain how we can help you in the area of hosting acquisitions or business sales.