CloudTweaks | DigitalOcean to Purchase Cloudways


Acquisition will improve choices for small to medium-sized companies

Transaction accelerates income development, will increase excessive spend prospects by 18% and is impartial to working revenue and free money circulate margins

NEW YORK–(BUSINESS WIRE)–DigitalOcean Holdings, Inc. (NYSE:DOCN), the cloud for builders, startups and SMBs, has entered into an settlement to amass Cloudways, a number one managed cloud internet hosting and software program as a service (SaaS) supplier for SMBs. The acquisition will simplify workflows for small to medium-sized companies which can be searching for simpler methods to construct and scale their digital companies.

Cloudways gives easy onboarding and day-to-day administration that’s purpose-built for sure SMBs trying to outsource their on-ramp to the web, serving to them offload the complexities of cloud infrastructure to allow them to spend extra time working and scaling their companies. The acquisition of Cloudways expands DigitalOcean’s serviceable market inside world SMBs and will increase choices for digital companies, eCommerce websites, bloggers, freelance builders and builders internet hosting on WordPress, PHP and Magento. WordPress is the preferred content material administration system (CMS) and, in response to W3Techs, it powers 43% of all web sites on the web.

Entrepreneurs and SMBs select Cloudways to optimize the efficiency, worth, assist, reliability and suppleness of their infrastructure and software administration. Consequently, they’ll save money and time whereas they develop their companies. Cloudways gives a differentiated providing with an open and versatile platform, an unbelievable price-to-performance ratio and superior buyer expertise.

DigitalOcean and Cloudways have been shut companions since 2014 — Cloudways at the moment depends on DigitalOcean infrastructure to energy roughly 50% of its prospects. Cloudways serves a world and rising buyer base with an industry-leading NPS rating of 71. Collectively, DigitalOcean and Cloudways will serve over 124,000 prospects paying over $50 per thirty days, representing roughly 84% of the professional forma firm’s complete income.

“SMBs symbolize greater than 50% of worldwide gross home product (GDP) and spend $70 billion on cloud infrastructure right now. With this acquisition, we’re making it simpler to launch, construct and scale a enterprise on DigitalOcean,” stated Yancey Spruill, CEO at DigitalOcean. “Cloudways and DigitalOcean share values round simplicity, neighborhood, openness and assist which can be important attributes to how we differentiate within the market. Collectively, we might be targeted on offering a easy, simple, intuitive and trusted platform to higher serve SMBs to allow them to construct their companies and pursue their goals of entrepreneurship.”

Cloudways has constructed a quickly rising enterprise producing free money circulate along with spectacular buyer metrics. Spruill continued, “Importantly, we’re excited so as to add Cloudways to the DigitalOcean household as they not solely share our imaginative and prescient for the SMB market alternative however are additionally a Rule of fifty enterprise that shares our dedication to delivering compelling returns for our buyers.”

“We’ve got labored carefully with the DigitalOcean crew since 2014 and at the moment are extremely excited to formally be part of the corporate,” stated Aaqib Gadit, co-founder and CEO at Cloudways. “SMBs love simplicity, efficiency, predictability, affordability, and nice assist. Along with DigitalOcean, we will turbocharge our mission of serving to SMBs develop by means of our cloud choices.”

Along with increasing DigitalOcean’s expertise and tooling, the acquisition of Cloudways additionally will increase DigitalOcean’s world worker base by 30% — including experience in key development areas that may proceed to drive productiveness and efficiency throughout the platform.

Transaction Phrases and Anticipated Monetary Contribution

Beneath the phrases of the transaction, DigitalOcean will purchase Cloudways for $350 million in money, together with a good portion of the consideration to be paid over a 30-month interval following the closing.

Cloudways might be accretive to DigitalOcean’s income development fee and won’t influence the fiscal 12 months 2022 working revenue margin and money circulate margin outlook that was offered on August 8, 2022, as a part of the Q2 2022 earnings launch. Cloudways is anticipated to generate greater than $52 million in income in fiscal 2022, representing a three-year compound annual development fee in extra of fifty%.

The transaction is anticipated to shut in September and DigitalOcean is forecasting for Cloudways to contribute between $13 and $15 million of income in fiscal 2022.

For extra data on DigitalOcean, go to https://www.digitalocean.com.

About DigitalOcean

DigitalOcean simplifies cloud computing so builders can spend extra time creating software program that adjustments the world. With its mission-critical infrastructure and totally managed choices, DigitalOcean helps builders, startups and small and medium-sized companies (SMBs) quickly construct, deploy and scale purposes to speed up innovation and enhance productiveness and agility. DigitalOcean combines the facility of simplicity, neighborhood, open supply and buyer assist so prospects can spend much less time managing their infrastructure and extra time constructing progressive purposes that drive enterprise development. For extra data, go to digitalocean.com or comply with @digitalocean on Twitter.

Ahead-Trying Statements

This press launch could include forward-looking statements inside the that means of Part 27A of the Securities Act of 1933, as amended, and Part 21E of the Securities Alternate Act of 1934, as amended. These forward-looking statements could also be recognized by their use of phrases and phrases reminiscent of “anticipate,” “allow,” “count on,” “will,” “consider,” “proceed” and different related phrases and phrases. The result of the occasions described in these forward-looking statements is topic to identified and unknown dangers, uncertainties and different components that might trigger precise outcomes to vary materially from the outcomes anticipated by these forward-looking statements, together with these components contained within the “Threat Components” part of our SEC filings. It isn’t attainable for us to foretell all dangers and uncertainties that might have an effect on the forward-looking statements contained on this launch. The outcomes, occasions and circumstances mirrored within the forward-looking statements is probably not achieved or happen.

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