Servers Australia has agreed to sell its shared hosting customers to VentraIP, and the companies will work together as part of a deal to streamline the focus of each within the Australian web hosting market. While financial details were not released in the Tuesday announcement, it appears that VentraIP will send back an undisclosed amount of cash, as well as close its dedicated servers business, and will instead market Servers Australia’s dedicated line to its customers.
Nearly 4,000 shared hosting customers will be migrated from Servers Australia to VentraIP’s hosting platform, and VentraIP will market Server Australia’s dedicated hosting to its own customers when they outgrow VentraIP’s shared or virtual servers.
“In an industry which lacks leadership and teamwork we are very pleased to be able to work with Jared and the team at Servers Australia to allow us to both deliver a higher level of service to our respective customers,” said VentraIP Australia Chief Executive Officer, Angelo Giuffrida.
Servers Australia Chief Executive Officer Jared Hirst said the move would streamline the company’s internal processes ahead of another “major announcement in the coming weeks,” according to a release. Giuffrida also hinted at an upcoming announcement from VentraIP.
“Dedicated servers are our bread and butter, and we are very excited to be able to put our full attention on extending our product range while chasing new opportunities in the market, with the added benefit of VentraIP Australia referring their customers who require dedicated servers our way,” said Hirst. “I am very confident that Angelo and the team at VentraIP Australia will take great care of our shared hosting customers and be able to offer them a whole new suite of additional products and services to continue to grow their businesses.”
CRN reports that Servers Australia made $5.7 million (AUD) in revenue in 2015, while VentraIP made $6.5 million.
VentraIP has been growing rapidly, and was up to 125,000 customers before the deal with Servers Australia, according to CRN. VentraIP also picked up over 15,000 customers when it acquired Aussie host Intaserve in July.