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Hostway acquisition is all about growth.

Tue, 17th December 2013, 17:12

Private investment firm Littlejohn & Co has announced the acquisition of Hostway Corporation. Hostway, a global leader in Web hosting, brings proven Web presence management to over 400,000 500,000 customers worldwide. Hostway's services, designed for personal users, small and medium businesses and enterprises, include domain name registration, Web hosting, Ecommerce Web hosting, Web design, online marketing, email, dedicated servers and colocation…. yada yada yada 

Hostway President John Martis states in the press release: 

We are extremely pleased to partner with Littlejohn and gain access to additional resources to help us grow our managed, cloud and web hosting businesses. The Littlejohn Team has deep experience growing businesses across a variety of industries and can help us further differentiate our offerings and build on our customer base. 

Martis then writes on the Hostway company blog:

 

Valued Hostway customers, I write to you with exciting news about the future of Hostway.

Private investment firm Littlejohn & Co. has become the majority investor in Hostway Corporation, and joins us in our continuing objective to provide world-class, hosted IT solutions to a broad customer and partner base. Hostway’s management team will immediately begin to put their investment to work for you.

As decision-makers at businesses of all sizes, you will understand the importance of adaptation to the growth potential of any company. Hostway views this transition as an immense opportunity to create an unparalleled user experience, while continuing to improve and reinforce all of our current services. Our new partners at Littlejohn & Co. will enable us to aim higher than previously possible. We owe this opportunity to further grow Hostway to you – our customers and partners. Our relationships with you contributed greatly to Littlejohn & Co.’s decision to invest so heavily in Hostway’s future. 

 

Change is good… right  

 

The blog post states that clients will experience no change to the flexible, scalable and affordable solutions they already receive from Hostway. Data and hardware will not be moved. Support and account contacts are the same. That Hostway's goals in this regard remain unchanged: still striving to offer tailored customer solutions through a broad portfolio of managed, cloud, web and email hosting services, and support them as efficiently as anyone in the business. And that the client's needs inform their every decision and influence each step forward.

 

So if nothing changes, why the announcement? 

Hostway John Morris points out that …

Littlejohn & Co. is a private investment firm focused on investing in companies that can benefit from operational and strategic support as they confront change in their industry, operations or ownership. Since 1995, Littlejohn & Co. has invested over $2 billion in 30 companies in a variety of industries and has helped these businesses achieve their growth objectives. They have significant experience investing in and professionalizing founder-owned businesses. Hostway represents a significant investment for Littlejohn, and they will work closely with us to significantly grow the company.

First and foremost, growth: Hostway’s operations, product offerings, sales and marketing efforts will expand and upgrade. As Morris says ”Hostway clients have no one to thank but themselves for this opportunity to further grow… for you” (editors note.. okay so that wasn’t an exact quote rather a collection!)

Hostway has created a page to answer any further questions about the transition FAQ, and one question in particular stood out from the rest: What will happen to Hostway executives that founded the company?

The Answer) Most will remain active supporters and shareholders within Hostway moving forward. Many have been offered and accepted positions on the Hostway Board of Directors. Most but not all..

Michael Kaplan, Managing Director of Littlejohn & Co. said:

Tremendous demand for traditional outsourced IT solutions and emerging demand for Software and Platform as a Service is fueling the growth of the hosting industry. Hostway serves as a great platform to capitalize on this opportunity due to its unique hosting platform, world class customer service and robust data center infrastructure. We look forward to working with Hostway's management to accelerate growth by continued investment in Hostway's technology platform, enhancing its sales and marketing efforts and selectively making acquisitions targeted at enhancing the customer experience.   

This acquisition is all about growth. Valued Hostway customers.. Growth in the webhosting industry can mean many thing and it's not always good! Littlejohn will serve as an active shareholder and board of directors in support of the Company's plan to capitalize on the tremendous demand for hosted IT solutions.

About Hostway

Hostway delivers customized Infrastructure-as-a-service (IaaS) and Cloud solutions, a robust suite of web presence and web optimization solutions, hosted exchange and a variety of other value-added applications and services in customizable managed, shared, cloud or hybrid environments.