A cloud services provider DigitalOcean agreed to acquire a website-hosting provider, Cloudways, for $350 million in cash.
The acquisition should help DigitalOcean expand the serviceable market within global SMBs (small and medium businesses.)
“SMBs represent more than 50% of global gross domestic product (GDP) and spend $70 billion on cloud infrastructure today. With this acquisition, we are making it easier to launch, build and scale a business on DigitalOcean,” said Yancey Spruill, CEO of DigitalOcean.
The transaction is expected to close in September. DigitalOcean forecasts that Cloudways will contribute between $13 and $15 million in revenue in the current fiscal year.
Being close partners since 2014, both companies now will serve over 124,000 customers paying over $50 per month.
“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,” said Aaqib Gadit, co-founder and CEO at Cloudways.
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