Cloudways, a Pakistani cloud hosting service provider, is being acquired by US-based DigitalOcean for $350 million in an all-cash transaction. The agreement has been signed and this is going to be largest ever acquisition from Pakistan.
Congratulations Pakistan! Great moment for the IT industry of 🇵🇰… pic.twitter.com/FtC5xXid7B
— Economy of Pakistan (@Pakistanomy) August 24, 2022
Cloudways, which serves the SMB market, was undoubtedly the apple of any investor’s eye right now, given the recent hype surrounding SMB-focused businesses.
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Cloudways CEO Aaqib Gadit spoke about the acquisition and said, “we have worked closely with the DigitalOcean team since 2014 and are now incredibly excited to officially be a part of the company.”
Since 2014, DigitalOcean and Cloudways have been business partners. After acquisition, they will cater over 124,000 customers paying more than $50 monthly. It represents around 84 percent of the pro forma company’s total revenue.
The acquisition of Cloudways will also expand DigitalOcean’s global employee base by 30 percent.
The action aims to simplify workflows for small to medium-sized businesses that are looking for easier ways to establish and scale their digital businesses. According to the statement, SMBs represent more than 50 percent of global gross domestic product (GDP) and spend $70 billion on cloud infrastructure.
The transaction is expected to close in September and DigitalOcean is forecasting for Cloudways to contribute $13-15 million of revenue in fiscal year 2022.
Cloudways fills a specific gap in DigitalOcean’s product portfolio for those businesses that can not manage to have their own infrastructure or DevOps.
Moreover, Cloudways provides onboarding and day-to-day management for SMBs interested to outsource their on-ramp to the internet. DigitalOcean simplifies cloud computing so builders can spend more time creating software that changes the world.
Having satisfied thousands of clients, Cloudways has built a reputation amongst businesses and entrepreneurs. As a result, these businesses take up countless services such as infrastructure support, performance optimization and application management at cost-saving prices thus increasing their profits while not compromising on quality.
The acquisition of Cloudways expands DigitalOcean’s serviceable market within global SMBs and increase options for digital agencies, eCommerce sites, bloggers, freelance developers, and builders hosting on WordPress, PHP and Magento.