July 18, 2005 — (WEB HOST INDUSTRY REVIEW) — Rich Lee, chief executive officer of Web hosting provider Hosted Solutions (hostedsolutions.com), confirmed in media reports that the company is in talks to merge with managed host DataPipe (datapipe.com).
Lee emphasized that the deal was a merger and not a sale as the company’s owners are only willing to sell a portion of their ownership stake.
Hosted Solutions was formerly known as Springboard Managed Hosting. The company is reported to have had annual sales of $6.7 million last year. DataPipe generates in the range of $40 to $50 million in yearly revenue.
Andy Schroepfer, Web hosting industry analyst at Tier 1 Research (tier1research.com), told the Web Host Industry Review that he estimates Hosted Solutions? worth at approximately $8 million.
