- DigitalOcean Holdings Inc., a cloud infrastructure provider for software developers, said it would buy CloudWays Ltd. For USD 350 million.
- Following the completion of the acquisition, it is anticipated that CloudWays would provide an extra revenue of between USD 13 – 15 million to the company during the current fiscal year.
DigitalOcean Holdings Inc., a company offering cloud infrastructure for software developers, announced that it has agreed to purchase CloudWays Ltd., a company that provides cloud-based website hosting, for USD 350 million.
The firm runs a platform to make cloud computing more user-friendly, so software developers may spend more time focusing on their work and less time thinking about the underlying infrastructure. This product is geared toward customers who operate startups and small and medium-sized businesses that offer a cloud infrastructure-as-a-service.
CloudWays has been working closely with DigitalOcean since 2014, and CloudWays presently depends on DigitalOcean’s infrastructure to power more than half of its client experiences. These factors led to DigitalOcean’s decision to partner with CloudWays. More than 124,000 clients will be serviced by the combined efforts of the two firms.
The CloudWays platform makes it easier for businesses to host their websites by offloading the administration and scalability of every stack component. It also frees businesses from the day-to-day responsibilities of technical management, allowing them to focus on other aspects of their operations. It is explicitly geared toward companies that use content management systems (CMS) like WordPress, Magento, and PHP. According to W3Techs.com, 43% of all websites use WordPress as their content management system. This makes WordPress the most popular online content management software in the world.
Yancey Spruill, chief executive of DigitalOcean, said, “Cloudways and DigitalOcean share values around simplicity, community, openness, and support that are vital attributes to how we differentiate in the marketplace. Together, we will be focused on providing a simple, easy, intuitive, and trusted platform to serve SMBs better so they can build their businesses and pursue their dreams of entrepreneurship.”
For the time being, CloudWays will continue to function as an independent business unit, and Aaqib Gadit, the company’s co-founder, and current CEO, will oversee its day-to-day operations. Under the new ownership, existing users will not notice any differences in the services they get.
It is anticipated that the transaction will be finalized in September, and a “substantial percentage” of the all-cash transaction will be paid out within the first thirty months after the transaction is completed.
At the beginning of this month, DigitalOcean announced tremendous growth in its sales. The company’s annual run-rate revenue was USD 544.1 million after the quarter, an increase of 28% from the previous year. Following the completion of the acquisition, it is anticipated that CloudWays would provide an extra revenue of between USD13 – 15 million to the company during the current fiscal year.