August 24, 2022 (MLN): US-based DigitalOcean has entered into an agreement to acquire Pakistan’s Cloudways, a leading managed cloud hosting and software as a service (SaaS) provider for SMBs for $350 million in an all-cash transaction, the company said on Tuesday.
This acquisition will enhance DigitalOcean’s ability to serve small business owners at every stage of their business journey.
Yancey Spruill, CEO at DigitalOcean said, “Adding Cloudways to DigitalOcean’s portfolio of capabilities will provide SMBs with easier workflows and on-ramps to build their websites and applications.”
DigitalOcean has always been focused on helping get ideas on the internet quickly, grow them, and scale them — with Cloudways we will be able to make that process even easier and for a wider range of SMBs, he added.
Cloudways provides simple onboarding and day-to-day management that is purpose-built for certain SMBs looking to outsource their on-ramp to the internet, helping them offload the complexities of cloud infrastructure so they can spend more time running and scaling their businesses, press release said.
The acquisition of Cloudways expands DigitalOcean’s serviceable market within global SMBs and increases options for digital agencies, eCommerce sites, bloggers, freelance developers and builders hosting on WordPress, PHP and Magento. WordPress is the most popular content management system (CMS) and, according to W3Techs, it powers 43% of all websites on the internet.
Aaqib Gadit, co-founder and CEO at Cloudways said “We have worked closely with the DigitalOcean team since 2014 and are now incredibly excited to officially be a part of the company."
“SMBs love simplicity, performance, predictability, affordability, and great support. Together with DigitalOcean, we can turbocharge our mission of helping SMBs grow through our cloud offerings.”
In addition to expanding DigitalOcean’s technology and tooling, the acquisition of Cloudways also increases DigitalOcean’s global employee base by 30% — adding expertise in key growth areas that will continue to drive productivity and performance across the platform.
Under the terms of the transaction, DigitalOcean will acquire Cloudways for $350 million in cash, including a significant portion of the consideration to be paid over a 30-month period following the closing.
The transaction is expected to close in September and DigitalOcean is forecasting for Cloudways to contribute between $13 and $15mn of revenue in fiscal 2022.
Copyright Mettis Link News
Posted on:2022-08-24T11:58:24+05:00
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