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SA's HOSTAFRICA bags multi-million Rand acquisition

SA's HOSTAFRICA bags multi-million Rand acquisition

South Africa-based webhosting company HOSTAFRICA has confirmed its merge with Greycell CC, trading as AmpleHosting.co.za, and its multi-million Rand acquisition of the hosting market specialist company.

Effective from 1 September 2019, the deal opens the three-year-old company to additional human capital, suppliers, domains, technical equipment and customers. This is not HOSTAFRICA's first acquisition - In December 2016, the company acquired VPS Networks to strengthen its cloud focus.

AmpleHosting.co.za has 15 years' experience in pure webhosting, and an established base of 3,500 customers. The company specialises in easy initiation and integration of domains "using software that allows customers meticulous control of their websites and services."

HOSTAFRICA is focused on cloud and virtual private server solutions across multiple operating systems, with servers based both locally and internationally.

It competes with domains.co.za, Xneelo (previously Hetzner) and OneGrid.

HOSTAFRICA says it is difficult for small enterprises to compete against multinational corporations that use their substantial amount of resources to dominate the South African hosting market.

"Right now, the market is fragmented with many small hosting companies who cannot make significant waves, stay relevant or keep up with rapid advancement in technology. Joining forces and expertise with other companies, as well as ensuring delivery of unparalleled customer service will increase our competitiveness. HostAfrica pursues a clear buy-and-build strategy. We carefully evaluated the hosting market for formidable partners that would strengthen our position in the hosting market. We reached out to AmpleHosting and opened discussions for mutual benefit. It was in both our best interests to unify and move forward stronger," the company stated.

AmpleHosting does not offer VPS/Cloud solutions to its customers, only web hosting.

Following this acquisition, AmpleHosting customers will eventually gain access to HOSTAFRICA's products such as Linux Virtual Private Hosting, Linux Cloud Hosting, Windows Cloud Hosting, VPS Reselling, as well as new products at HostAfrica such as WordPress Hosting, Comodo cWatch website security, Acronis Backups.

In the short term, according to information supplied, the AmpleHosting.co.za website will be updated with HOSTAFRICA branding, and its customer portal integrated, along with phone support and 24/7 service hours.

The companies also promise improved customer support and longer service hours.

"This partnership gives us the opportunity to combine our expertise and move forward stronger" says Graham Jame Paine, chief executive officer of Greycell CC.

Jame Pain will become a partner of HOSTAFRICA and Head of Product Management.

Michael Osterloh, Founder and Managing Director of HOSTAFRICA, as well as the owner of CLOUD.co.za and VPS.co.za, says "We believe joining forces will stimulate the hosting industry and increase competition. HOSTAFRICA has grown considerably in size and experience over the last three years. We intend to keep driving this momentum forward. We have more strategic partnerships and acquisitions planned that we believe will also be future successes."

According to the companies, growth in the dotAfrica domain in South Africa is stagnated by expensive prices.

"dotAfrica domain costs over R300/ year while other conventional, local domains like .co.za and .org.za are a quarter of the price and more established. Even dotCom is slightly cheaper than dotAfrica. In South Africa's current economic climate, we hardly see requests for other local/ personalised domains. DotCapetown and dotJoburg cost as much as dotCom, but most would rather pay a third of these prices for .co.za and .org.za," they state.

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