Web hosting provider Six Degrees Group announced on Monday that it has completed the acquisition of London-based managed hosting and managed cloud provider Ultraspeed. The terms of the acquisition have not been disclosed.
Founded in 1998, Ultraspeed has an average customer spend of about $40,000 per year and this mid-market customer base will support Six Degrees’ focus on this segment. Private cloud services make up the majority of its revenues, with the remaining amount a combination of dedicated server and shared cloud server hosting.
The acquisition of Ultraspeed brings a variety of non-profit and digital media customers to Six Degrees Group, and will help bolster its managed data division. Both Six Degrees and Ultraspeed are based in the UK, so the integration will create a more complete offering for its UK-based customers. Web hosting providers looking to add more capabilities to one division, such as cloud services, can look to acquisitions to help foster this growth and expertise.
Six Degrees Group says Ultraspeed’s team has deep expertise in the managed and cloud hosting sector so it is highly complementary to Six Degrees Group’s cloud offering.
“I am delighted to bring Ultraspeed into Six Degrees Group. Our 2012 strategy is very clearly focused on expanding our managed hosting and cloud capabilities and this acquisition marks a significant move in that direction,” Alastair Mills, CEO of Six Degrees Group said in a statement. “Ultraspeed brings advanced technologies to the group and a talented team of people with superb hosting know-how. In addition, their customer base is in our mid-market sweet-spot and they boast a strong presence in the digital media sector that is a key industry for Six Degrees Group. Forrester Research predicts that cloud services will grow at 27 percent CAGR and our current performance comfortably exceeds that level. With more investments in hosting and cloud to follow, I am confident that we are well-positioned to be the fastest growing and most admired managed data services company in the UK mid-market.”
Six Degrees describes its services as “cloud enablement” as developers can use its infrastructure as a service to deliver SaaS deployments. Ultraspeed will help expand its cloud offerings to include a managed cloud platform for both entry-level and more experienced customers and provide engineer support to manage clients’ infrastructure remotely.
“This is an exciting development for Ultraspeed’s employees and customers. We have built a very strong business focused on managed hosting and cloud services,” Jordan Gross, CEO of Ultraspeed said in a statement. “I decided that it was right for Ultraspeed to join Six Degrees Group as that will allow us to add strong network and data center offerings to our proposition, along with converged services, giving us a strong end-to-end capability. We’ll also have greater financial strength and a broader technology platform allowing us to continue to target larger companies in the mid-market space.”