PE-Backed Web Service Provider One.com Acquires Hostnet
European web hosting services provider one.com – backed by private equity firm Cinven – has acquired Amsterdam’s Hostnet for an undisclosed amount.
This is M&A deal 166 that ChannelE2E has covered so far in 2020. The pace of deals has slowed a bit since the coronavirus pandemic emerged, but overall deal volume remains reasonable steady. See the complete M&A deal list here.
The acquisition extends one.com’s geographic reach into the Netherlands. Founded in 1999, Hostnet employs around 130 people and serves more than 210,000 customers, with a focus on SMEs (small and medium-sized enterprises).
The businesses are highly complementary given their focus on private customers, SMEs, and small office home offices (‘SOHOs’), according to one.com.
One.com Acquires Hostnet: Executives Perspectives
Further explaining the deal, Stephan Wolfram, Group CEO of one.com, said:
“We are pleased to announce the acquisition of Hostnet given its focus on operational excellence and high brand awareness. As a result of this transaction, we are now a leading operator in the Dutch hosting market that is core to the development of our business strategy. We look forward to working with the team at Hostnet and significantly enhancing our European presence and product range for our customers.”
Harold Douwes, founder and CEO of Hostnet, added:
“Hostnet is a highly regarded player in the hosting market with capabilities, awareness and products that will contribute to further accelerate the development of one.com’s business. Within the consolidating hosting market, it was important for Hostnet to connect with a strong partner. We found it in one.com, an ambitious party with a lot of knowledge and experience. This offers plenty of possibilities and opportunities for the future.”
Thomas Railhac, a partner at Cinven commented:
“Cinven has a strong track record of successfully growing businesses through a structured buy and build strategy. We are excited about this acquisition as it represents a milestone for one.com becoming a market leader in the Dutch region, and is a clear example of the Group’s ambitious future growth plans.”
One.com’s Growth Plans
For its part, one.com was founded in 2002 in Denmark. In February 2019, private equity firm Cinven acquired a majority stake in the company. The backing has allowed one.com to pursue various acquisitions.
The deal marks one.com’s third in its “buy and build” strategy. Previous buyouts inluded Digital Garden in September 2019 and SYSE in February 2020. The firm says it’s looking to continue expanding both organically and through acquisitions within its core markets of the Nordics, Benelux, the United Kingdom, and the DACH region (Geographical distribution of German speakers).