Two Acquisitions Consolidate Local Hosting and Data Center Markets

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In two separate announcements this week, Hostopia acquires an Australian web hosting business to grow its Asia-Pacific reach, while 365 Data Centers grows its data center footprint.

Hostopia Deal with j2 Global Continues Australian Hosting Market Consolidation

Web services platform wholesaler Hostopia has acquired j2 Global‘s Australian web hosting business, including the brands Web24 and Ausweb, to expand its reach in Australia and the Asia-Pacific region, ARN reports.

The deal appears to have been struck in August, according to ARN, and Web24 is currently operating as a Hostopia brand.

Hostopia became a subsidiary of Deluxe Corporation in a $124 million deal in 2008. Hostopia also acquired Australian web hosts Panthur and Digital Pacific in separate deals earlier this year, the latter for $41 million.

Web24, which had been acquired by j2 in 2014, primarily provides domain and hosting services to SMBs.

The Australian web hosting market has been steadily consolidating for several years, with j2 Global acquiring cloud backup company CloudRecover in September, Telstra adding Microsoft-focused enterprise app developer Readify and Zettagrid acquiring host Conexim in 2016.

365 Data Centers Acquires Host.net

U.S. cloud and colocation provider 365 Data Centers announced it has acquired Florida-based Host.net and a pair of data centers from Broadband One LLC.

365 Data Centers was acquired in April by a group of investors led by Chirisa Investments, and including Lumerity Capital and Longboat Advisors.

“This follow-on acquisition, within just six months of purchasing the 365 Data Centers platform, provides significant financial scale for 365 and accelerates our strategy of broadening the company’s customer and services base with more than 500 enterprise customers and a portfolio of scalable, retail and wholesale network, IP blend, remote disaster recovery as a service, virtual cloud compute and storage, and business continuity product offerings,” said 365 Data Centers CEO Bob DeSantis.

The acquisition gives 365 Data Centers 3 data centers in Florida, in addition to data centers in Buffalo, Chicago, Detroit, Indianapolis, Philadelphia, and New York. Host.net also has a network of 30 points of presence in third party data centers. The two facilities acquired with Host.net offer 4.5 MW of power capacity and direct connections to Equinix massive NAP of the Americas exchange point in Miami.

The Host.net team will be integrated with 365 Data Centers, with CEO Jason Katz will become vice president and chief administrative officer, reporting to DeSantis.

The financial terms were not disclosed for either transaction.

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