Web Hosting – M&A Update

Strong growth and high margins driving consolidation in USD50 billion web hosting market

The hosting industry has experienced strong growth in recent years and is currently valued
at more than USD50 billion. Robust growth looks set to continue across all major hosting
subsectors over the next few years. Further consolidation is anticipated during this time as
larger market participants continue to pursue acquisition opportunities.

Key conclusions from this report include:

  • Size and global presence are needed to attract large customers and/or build
    a strong brand.
  • Creating more scale and improving buyers’ offerings are key motivations for
    acquisitions.
  • Innovation is key to attracting and retaining customers in private Cloud
    infrastructures.
  • There is a clear trend between the size of the target and the multiple a buyer
    is willing to pay for that target.
  • PE firms generally execute larger transactions and also tend to pay higher
    multiples for these transactions.

Download a copy of Web Hosting – M&A update here