Web.com Pushes into Latin America with Donweb Acquisition

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Web.com has made an aggressive move into the Latin American market with the acquisition of Argentina-based Donweb.com, the company announced this week. Donweb is an SMB-focussed domain registrant and web host, and owns two data centers.

Founded in 2002, Donweb became the first ICANN registrant in Latin America in 2007, and the company says it now holds a 79 percent share of the Argentinian web hosting market.

“The addition of Donweb.com to our organization will be an important next step in our international growth strategy. Latin America has a large and growing base of small-business customers who are looking for website and internet solutions and need assistance,” David L. Brown, chairman, chief executive officer and president of Web.com said in a statement. “Over the last 15 years, Donweb.com CEO and Founder Guillermo Tornatore has built an impressive service-oriented business that focuses on the customer, and we look forward to Guillermo and his experienced, Argentina-based team of approximately 90 employees joining the Web.com family.”

Latin American IT revenues are expected to jump by 20 percent for 2016 to $7.78 billion, with cloud computing alone reaching $2 billion, according to Frost & Sullivan. Prices for IT services in Latin America tend to be high, due in part to a lack of competition, as indicated by a report on public cloud prices by 451 Research in March and CloudFlare’s bandwidth price comparison in August.

“We look forward to combining our expertise and success in helping small businesses with Web.com’s online marketing solutions to better serve this market,” said Guillermo Tornatore, Donweb.com’s chief executive officer and founder.

The transaction is expected to close by the end of the first quarter 2017.  Financial terms were not disclosed. Its share price rose roughly $1 on the Nasdaq on Tuesday.

Web.com also acquired digital marketing company Yodle in February, which had an immediate impact on its average revenue per user.

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