April 28, 2008 -- (WEB HOST INDUSTRY REVIEW) -- Web hosting provider Hostopia (hostopia.com) announced on Monday that it has signed a definitive agreement to purchase the customer assets of Web hosting provider Luxomovera, which operates as uplinkearth (uplinkearth.com).
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According to the press release, uplinkearth accepted Hostopia's its all-cash offer - the amount left unspecified - on Friday and the companies plan to migrate around 12,500 small business customers from uplinkearth's data center facility to Hostopia's unified web services platform by June 30.
The migration of customers between platforms and between facilities will take place in the shadow of bumpy integration efforts (of assets acquired by Hostway and Endurance International) that invited widespread and vocal criticism last year, and have left a bit of a negative association with this kind of customer integration in the hosting business.
"We decided the market timing was ideal to transfer our user base over to a highly capable provider in the hosting and SaaS arena - one who can deliver the high-demand services our users need," says Michael Yablonowitz, president and co-founder of uplinkearth. "Hostopia's proven credentials and track record in migrating large numbers of hosted business customers made them the ideal choice as our chosen buyer. We think our users will eagerly respond to the many new upgrades and value-added services Hostopia plans to offer them."
A privately-held New Jersey company, uplinkearth was founded in 1997 and offers managed shared Web hosting, dedicated server solutions, website design and marketing. The uplinkearth website says the company currently hosts more than 30,000 websites in 190 countries worldwide.
Hostopia says the customers will continue to be served under the uplinkearth brand, which will operate as a managed service by Hostopia.
"Hostopia's main focus is private-labeled, wholesale outsourced web services that we sell to Telco's and broadband providers," says Colin Campbell, CEO of Hostopia. "Acquisitions such as uplinkearth complement our organic growth plan by adding end-users to our unified platform and giving us revenue-per-user opportunities through the many additional value-added services we offer, such as fax-to-email and collaborative email with wireless mobility synchronization."
