Website hosting company Cloudways will be purchased by cloud services provider DigitalOcean for $350 million in cash.
With the acquisition of Cloudways, DigitalOcean’s serviceable market among international SMBs is expanded, and there are now more possibilities for hosting WordPress, PHP, and Magento for digital agencies, E-Commerce websites, bloggers, independent developers, and builders.
According to W3Techs, WordPress is the most widely used content management system (CMS) and powers 43% of all websites on the internet.
“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 deal is anticipated to be finalized in September. In the current fiscal year, Cloudways is expected to bring in between $13 and $15 million in revenue, according to DigitalOcean’s forecast.
Since 2014, both businesses have worked closely together, and they now serve over 124,000 consumers who make over $50 a 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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