February 26, 2007 -- (WEB HOST INDUSTRY REVIEW) -- Web hosting and Internet services provider Sitestar (sitestar.com) announced on Monday it has acquired the customers and services of Internet service provider Magnolia Internet Services (magnolia-net.com).
Sitestar says it has begun migrating the Magnolia Internet customers to its own network and intends to leverage its economies of scale business model to achieve robust profit margins and expects to increase customer retention by delivering higher levels of service and customer support.
Located in South Arkansas and founded in 1997, Magnolia Internet has grown its base of dial-up, DSL and Web hosting customers to include both residential and business accounts. Magnolia Internet customers are hoped to benefit from extended customer support hours and have access to value-added products and services.
"The Magnolia Internet deal neatly dovetails with our strategy to acquire the assets or customers of the seller and transition them to the Sitestar platform," says Frank Erhartic, Jr., CEO for Sitestar. "Given our size and business processes, we're able to realize greater cost savings than most ISPs, so we can generate a faster and stronger return on investment. Most importantly, we're looking out for our shareholders by staying disciplined and buying smart."
