Sydney Web Host Crucial Acquires Hosting Company AVS Networks

1 comment

Sydney web hosting company Crucial has acquired local hosting and domain registration firm AVS Networks on Tuesday. The terms of the acquisition have not been disclosed.

As part of the acquisition, AVS Networks customers will be migrated to Crucial’s Sydney-based infrastructure in February, and AVS Networks CEO and founder Nigel Burke will join the team at Crucial.

In a statement on AVS Networks’ website, Burke said that the company entered acquisition discussions with Crucial in late 2014 and early 2015. “Their interest in AVS Networks was validation for what AVS has achieved thanks to your support, and is something we can be proud about,” Burke said.

“AVS Networks has been a fantastic experience for me,” Burke said in a statement. “For nearly two decades I have dedicated my life to growing AVS, helping Australian businesses get online and connect with thousands of customers.”

A Crucial spokesperson told ComputerWorld Australia that the company would not be disclosing how many customers joined via the AVS acquisition, but one can guess that it was fairly significant given the longevity of the 17-year-old company. Acquisitions can help web hosts build up a customer base quickly, and in this case, because both companies are based in Sydney, the acquisition should specifically scale its local customer base.

Launched in 2003, Crucial offers a range of web hosting and cloud hosting offerings targeted towards small businesses. According to its website, the company has more than 5,500 customers and has more than 7,000 virtual servers.

In October, Crucial launched its new affiliates program, simply called the Partner Program. The program boasts “Australia’s highest paying hosting affiliates program” and referral fees start at $50 for web hosting and reseller hosting. For service providers that target small businesses, offering an affiliate structure is important as word-of-mouth can be a big driver of growth.

In addition to VPS hosting, Crucial specializes in WordPress and Joomla web hosting, as well as Magento ecommerce hosting.

Add Your Comments

  • (will not be published)

One Comment

  1. We were researching this transaction attempting to provide some scale to AVS Networks. You will note that all attempts to go directly to the AVS site takes one to a well crafted letter by AVS founder and owner Nigel Burke, all other AVS information is not directly available. Going through the WayBackMachine it appears that AVS was largely a support company providing web design, SEO, marketing and curiously enough photography services. Then of course hosting services. Of the four employees, including the owner, in March 2012 none were on the hosting technical side. My gut reaction is that AVS was reselling Crucial and those customers are already resident on its servers. Read my WHIR M&A Blogs. Tom