Hostway Acquires Affinity Internet

Hostway Corporation has acquired Affinity Internet Inc. in a deal that will combine two U.S.-based hosting operations focused on the business market, the two companies announced today. Hostway CEO Lucas Roh will lead the combined entity, which Hostway said would have 600,000 customers, 750 employees and a presence in 11 countries. Terms of the deal were not disclosed.

The acquisition was described as "the conclusion of a long and involved process that took many months," and will provide Hostway with the scale and breadth of services to compete in a changing hosting landscape. Affinity operates multiple hosting brands, including ValueWeb, Gate.com and BigStep.com, and also offers private-label hosting programs for third-party clients including eBay.

The deal will give Hostway more than 553K hostnames, plus additional sites from Affinity's private-label hosting, placing the combined entity among the world's 30 largest hosting providers, according to Netcraft's Hosting Provider Switching Analysis.

“By joining forces, we have an increased global scale, scope, human capital and financial strength to continue to deliver superior service levels and innovative products, which Hostway and Affinity have both built valuable brands and reputations on," said Roh. "Our first and main focus through this acquisition has been to ensure that customers of both company’s do not experience any disruption in current services and in fact bolster it further."

"Both parties are confident that this acquisition will generate benefits for our customers and partners," said Jim Collins, the CEO of Affinity Internet. "Hostway brings research and development power to build and deploy compelling and differentiated services, while Affinity has been guiding small businesses to web success with cutting edge services for over 10 years. By combining our exceptional, proprietary solutions we are able to provide an offering unlike anything currently in the market."

The combined company will offer a broad range of services, including domain name registration, shared web hosting, managed dedicated hosting, colocation, e-commerce hosting, SaaS application Hosting, web design and marketing, and online advertising solutions.

Markets served by the "new" Hostway will include the USA, Canada, United Kingdom, Germany, the Netherlands, Belgium, France, Romania, Australia, South Korea and India.