October 12, 2007 -- (WEB HOST INDUSTRY REVIEW) -- Research and analysis firm Tier 1 Research (tier1research.com) announced on Friday that it has launched a new report that highlights mergers and acquisitions activity in the Internet infrastructure and mass-market Web hosting sectors in the first half of 2007. The key details of more than 20 deals are presented, followed by in-depth analysis that summarizes the impact on the companies involved and the sector itself.
The report says that as the Internet infrastructure and mass-market hosting sectors continue to mature, the demand is returning to the point where vendors in this space are looking to commit themselves to the business long-term and are seeking acquisitions to complement their organic growth efforts and achieve meaningful scale.
Other factors driving this activity include the need for specific technological capabilities or facilities, international expansion and strategic considerations.
"The hosting industry has always seen regular M&A activity and the first half of 2007 was no exception," says Philbert Shih, senior analyst at T1R and coauthor of the report. "In fact, the volume of activity picked up considerably from the previous year, with several larger deals in both the infrastructure and mass-market segments. We believe M&A will continue to be a hallmark of the sector. The second half of the year should see less activity, but going into 2008, we should not expect that the M&A trend will slow."
