DigitalOcean, a cloud computing provider, has acquired Cloudways, a managed cloud hosting platform, for $350M. The transaction is expected to close in September 2022.
This acquisition has been announced on both companies' websites. Under the terms of the deal, expected to close in September, DigitalOcean has agreed to buy Cloudways for $350 million in cash and will pay a significant portion of the funds over 30 months following the closing.
Aaqib Gadit, Co-founder and CEO, said,
We have worked closely with DigitalOcean since 2014 and have developed a strong friendship and partnership with their team since that time. Both companies are uniquely aligned with a focus on simplicity and making life easier for our SMB customers and I have no doubt that both culturally and technologically, DigitalOcean will be a great home for our customers and our employees.Cloudways' CEO
Yancey Spruill, CEO of DigitalOcean, said:
Cloudways is expected to generate more than $52 million in revenue in fiscal 2022, representing a three-year compound annual growth rate of over 50%. And with this acquisition, DigitalOcean forecasts Cloudways to contribute between $13 and $15 million of revenue in fiscal 2022 for them. Together, DigitalOcean and Cloudways will serve over 124,000 customers paying over $50 per month, representing approximately 84% of the pro forma company's total revenue.
Current Cloudways customers will see no changes to their services. There is no change at all. However, as an existing customer at Cloudways, I really hope we don't have to see any increase in Cloudways's pricing in the future.
1 Comment
So, how is everything going? Is it good news or bad news? Cloudways has great system, hopefully that DO can maintain it or my next plan is to host few sites on my previous provider, Asphostportal.