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Acquisition of a Dutch hosting company

Buy a Dutch hosting company

  • The acquired company is a small hosting company located in the Netherlands
  • The company that was bought has revenues of less than 1 mio €
  • The buyer is an international hosting group that buys hosting companies
  • CFIE business acquisition input: The CFIE M&A team member, Govert Derks searched the target company and did the first screening of the company. This acquisition is an important addition to the acquirers group of companies. The hosting buyer is looking to grow via the purchase of hosting portfolio’s globally.

Overview of how to buy a hosting company by an international acquirer

The acquired company focusses on hosting and other related IT services. The hosting portfolio has been build up over a long period but has no strategic focus more today. Hence, the owner of the hosting portfolio was open to sell this hosting portfolio. The sellers now focuses on it’s core activity which are IT services to SME companies in the Netherlands.

The strategy of the international hosting buyer

The buyer is a mid-sized international hosting company. Several years after being established in Argentina a new hosting company, Connaxis hosting S.A, was set-up. This company has grown slowly and gradually mainly via the acquisition of small and middle-sized hosting portfolio’s. Here are some of the characteristics of this international hosting companies acquisition strategy:

  • Focus on the acquisition of small and medium size hosting companies
  • Integrate the hosting portfolios
  • Provide high quality service to acquired clients
  • Achieve high gross margins due to the elimination of the main costs post-acquisition

Activities of the CFIE M&A team in the support of buying the hosting company

The CFIE hosting M&A team helps hosting buyers in acquisitions. In this case the work done is mainly upfront. The work consists in sourcing the right targets for an acquisition. The CFIE hosting M&A team sees the importance of an efficient hosting industry. The growth of the hosting industry has become much lower and many portfolio’s are lying idle. We believe it is most efficient for a hosting owners to sell the portfolio and focus on other activities. The CFIE hosting M&A team has a good direct contact to hosting business owners and can support sellers in a sale of smaller hosting portfolio’s.

Govert Derks has looked for the target hosting company and has explained the buyers strategy. After initiating the talks and negotiations between the hosting target company and the buyer CFIE facilitated the contact to the hosting buyer. The buyer has practical experience in the process of acquisitions of international hosting companies and worked independently on the further process.

Highlights of the hosting companies acquisition

  • Both companies are active in the hosting industry and the management of the hosting portfolio can be more effectively done by the new buyer
  • The target company has a focus on ICT related activities and will get more time for core activities
  • The international hosting buyer can invest further in the client support

Information about business sales and acquisitions in the Dutch hosting industry

Feel free to contact us for further details about this hosting acquisition. If you are looking for acquisitions or business sales of hosting companies in other European countries it is also good to contact us. We know many hosting targets across Europe and we are able to find the ones that suit you. Please get in touch via the contact form at the right side of this page so we can explain how we can help you in the area of hosting acquisitions or business sales.