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October 5, 2004 -- (WEB HOST INDUSTRY REVIEW) -- Canadian Internet bandwidth and colocation provider Peer 1 Network (peer1.net) announced on Tuesday that it has entered into a definitive agreement to acquire all of the assets of Web hosting provider ServerBeach (serverbeach.com) for $7 million US in cash. The acquired assets include over 4,200 dedicated hosting customers and a data center facility based in San Antonio, Texas.
Peer 1 said it expects the acquisition to increase monthly recurring revenue by 57 percent to over $2 million Canadian. The company said the integration of ServerBeach, which will operate as a wholly owned subsidiary of Peer 1, will be completed quickly, without major cost.
"The highly accretive acquisition of ServerBeach is a realization of Peer 1 management's strategy of accelerated growth through acquisitions," said Geoffrey Hampson, president and CEO of Peer 1 Network. "Peer 1 has been seeking acquisitions that increase the footprint of the Peer 1 network, that increase the colocation capacity, and that offer a wider range of choices to Peer 1 customers. Because we are leveraging our existing colocation and network infrastructure, there will be very little incremental cost associated with the future growth of this new business."
ServerBeach was launched in early 2002 by Richard Yoo, a founder of Rackspace Managed Hosting. The company specialized in discount dedicated servers on both Linux and Windows platforms.
"The fit between the ServerBeach and Peer 1 product families is outstanding," said Yoo. "With Peer 1's and ServerBeach's corporate cultures being so closely aligned, the combination will be a win for the ServerBeach team and their customers. Peer 1 is acquiring a great company that will contribute to producing a strong market force in the dedicated server, colocation and bandwidth markets."
Final terms are subject to regulatory approval, and final closing is expected to take place within 15 days. Peer 1 is maintaining ServerBeach's operations in San Antonio, Texas.
Read Back Issues of WHIR Magazine
October 2009 - Web Hosting's All Star Team
This has been, for us, one of the most interesting, exciting and challenging build-ups to an issue of the magazine yet, Web Hosting's All Star Team. The balloting process was our first experiment with a kind of user participation we're planning to do a lot more with in the months to come. We had thousands of ballots submitted, with hundreds of write-in suggestions and a demonstration of user engagement that has us feeling super positive about the project.
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July 2009 - What am I Worth?
One of the interesting luxuries of working on a project like the printed WHIR magazine is that it allows us to play with things like our point of view from one issue to the next. In recent months we've been giving added attention to the kind of practical and applicable advice aimed at smaller hosts and resellers. This issue carries on with that point of view, asking, in our cover story, "what am I worth?" It's a complicated question without a clear-cut answer.
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May 2009 - The Blueprint for a Small Web Host
I was a little surprised by how difficult it became to see this idea through. We set out to assemble a blueprint for a small hosting business, but butted up pretty quickly against the general impossibility of covering all the territory that was out there to be covered. The basic constraints of a printed magazine, and the less-than-infinite amount of time we had available forced us to face the fact that we could never produce an exhaustive guide to starting a hosting company.
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