Acquisition of Cloudways by DigitalOcean for $350 million
DigitalOcean Holdings, Inc. (NYSE:DOCN), the cloud for developers, startups and SMBs, has entered into an agreement to acquire Cloudways, a leading managed cloud hosting and software as a service (SaaS) provider for SMBs. The acquisition will simplify workflows for small to medium-sized businesses that are looking for easier ways to build and scale their digital businesses.
Cloudways provides simple onboarding and day-to-day management that is purpose-built for certain SMBs looking to outsource their on-ramp to the internet, helping them offload the complexities of cloud infrastructure so they can spend more time running and scaling their businesses. The acquisition of Cloudways expands DigitalOcean’s serviceable market within global SMBs and increases options for digital agencies, eCommerce sites, bloggers, freelance developers and builders hosting on WordPress, PHP and Magento. WordPress is the most popular content management system (CMS) and, according to W3Techs, it powers 43% of all websites on the internet.
Ten years ago, myself, Pere, Uzair, and Umair founded Cloudways with the mission of partnering with SMBs to save them time and money and allow them to grow their business with peace of mind and improved productivity. Every day we have been inspired by our mission to help SMBs move their dreams forward and today we’re humbled to serve more than 72,000 customers on over 570,000 websites. I am extremely proud of what we, a global team of 280+ employees, have built over the years, and I am incredibly excited to continue our trajectory and mission with DigitalOcean.
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.
For now, Cloudways will remain a standalone business unit and continue to operate as usual under my lead, where we’ll continue to serve agencies, developers, and SMBs as we have always done. Current Cloudways customers will see no changes to their services.
We are grateful to our community who have trusted us for so many years. We look forward to continuing to deliver the simplicity, flexibility, incredible price-to-performance ratio and great support that you have enjoyed in the past as we continue to grow and invest in Cloudways’ future as part of DigitalOcean.
We look forward to the deal closing in September, but until then I would like to thank our team, both past and present, for their dedication to serving the small businesses of the world, our partners who have been with us and enabled us to grow and succeed and most of all our customers who we will continue to obsess over serving and supporting every day.
We, along with the team at DigitalOcean, are committed to making it simpler for builders and business owners to access the power of the Cloud to change their corners of the world.
Thank you and looking forward to the next chapter in the journey!
Aaqib Gadit, Co-founder and CEO