In a trend towards consolidation in the mass-market hosting and domain industries, Host Europe Group has bought domainfactory, one of Europe’s largest web hosting companies with approximately 173,000 customers and 1.1 million domains under its management.
The terms of the acquisition were not disclosed.
Following Host Europe Group’s recent acquisition of managed hosting provider Telefónica Germany Online Services GmbH, this acquisition further enhances Host Europe Group’s presence and capabilities in the German mass hosting market. Across its various brands including 123-reg, Webfusion, Heart Internet and Host Europe, Host Europe Group has nearly 1 million customers and is managing more than 5.5 million domains.
Host Europe Group CEO Thomas Vollrath said in a statement, “This is our second acquisition in recent months and is consistent with our strategy of consolidating a highly fragmented hosting market in Europe.”
According to the announcement, Host Europe Group and domainfactory are aligned both strategically and culturally with both companies valuing high quality service and customer care in particular.
In July 2013, Host Europe Group itself was bought by European private equity firm Cinvin for £438 million (or roughly $671 million at the time).
Over the past few years, private equity firms have shown great interest in the mass-market hosting space, which has given many of these hosting companies the buying power to grow through acquisition. In 2011, competitor Go Daddy was bought by KKR & Co., Silver Lake Partners and Technology Crossover Ventures. This has enabled Go Daddy to make a string of purchases including web host Media Temple and domain marketplace Afternic.