Deciding to sell is a big decision, but we believe that as the gaining company we can make that decision a little easier. That’s because to us, it’s not just a question of numbers - taking over an active client base is about finding the right fit. We want to provide an excellent service for your clients, not just acquire as many customers as possible. Quality trumps quantity.

Our technical ability and ethos give you the peace of mind and confidence that what you've worked so hard to create is going to a good home.

To date we have been involved in 4 acquisitions. Each and every time we work closely with the seller to ensure a smooth client transition, minimising hassle for everyone involved.

Entrusting us with your client base means:

  • Being fairly remunerated for your hard work.
  • Outstanding customer support—our customers love us!
  • A team of hosting heroes committed to doing things the right way (and the stats to back it up!)

Criteria


We’ll consider purchasing the client base of any UK based shared hosting company. However, we don’t purchase physical assets as we’ll migrate all clients to our ex-MOD Bunker datacentre outside London, and place them on our own equipment. We are experts at migrating sites, and we guarantee a smooth, painless migration with minimal disruption of service.

Your company must meet all of the following:

  • Company is UK based
  • At least 95% of the client base are UK residents
  • Company has been established for at least 2 years
  • Company is growing or is showing stable turnover
  • Uses cPanel/WHM
Bonus requirements

You can increase the valuation of your company if it matches any of the following:

  • Majority of users on monthly billing (+1 month of annual revenue)
  • RIPE IP address space (+1 month of annual revenue)

Desirable Qualities


We prefer companies that have the following:

  • Over 500 cPanel hosting accounts
  • WHMCS billing system
  • Nominet TAG Holder for .uk domains
  • Use eNom for .com, .net, .org etc domains
  • Majority of domains use your nameservers
  • Supplier contracts on monthly basis or near renewal

Remuneration


We're able to acquire companies up to £250,000.

We’ll offer 6-12 months of revenue generated from shared, business and reseller hosting accounts. We don't count domain revenue as we charge just above cost. We're also open to providing a bonus for hitting performance and retention targets on the anniversary. We've found this is a great way to ensure a smooth transition, which is a win for seller, buyer and the clients.

The important thing here is that we're not just interested in the amount of money that your clients make you, or could make us - we want to make sure we’re a good fit for your clients. We’re looking to take on board happy clients who respect quality and keep them happy, whilst protecting your legacy. If we're the right fit, we can build lasting relationships. Clients from previous acquisitions stay with us for years. Some have been with us a decade!

Our Acquisition Stories

See how we successfully acquired these great companies


ScotReg

[ Acquired: August 2005 ]


No. of Accounts:
290
Monthly Turnover:
~ £1500
Offer:
~ £10,000 ~ 6 months
Retention:

50% - half of these accounts are still with us a decade on!

ZipHost

[ Acquired: October 2011 ]


No. of Accounts:
80
Monthly Turnover:
~ £500
Offer:
~ £5,000 ~ 10 months
Retention:

80% - after nearly 3 years

PurpleCloud

[ Acquired: December 2011 ]


No. of Accounts:
1100
Monthly Turnover:
~ £3,000 - 4,000
Offer:
~ £24,000 + bonus ~ 7 months
Retention:

80% after 2.5 years; churn of less than 2% monthly—much lower than industry average

Tidy

[ Acquired: June 2014 ]


No. of Accounts:
450
Monthly Turnover:
~ £3,500
Offer:
~ £35,000 + bonus ~ 10 months
Retention:

80%+ after the 1st year

Blackfoot

[ Acquired: December 2015 ]


No. of Accounts:
2642
Monthly Turnover:
~ £18,000
Offer:
~ £180,000 + bonus ~ 10 months
Retention:

Will let you know on the anniversary!

How Much Is Your Company Worth

Take the total of your annual shared, business and reseller hosting revenue then calculate your average monthly revenue by dividing by 12. We'll pay between 6 and 12 months of revenue, depending on the other factors listed above. You can also earn extra months revenue for hitting the bounties listed above.

An example of your companies worth...

Your company's annual revenue is £84,000 (with the average monthly turnover £7,000) and so your company could be worth £42,000-£84,000. Or £49,000 - £91,000 with majority of users on monthly billing (+1 Months revenue)

If you think we're the right fit for each other, and if it meets all of the mandatory requirements then we’d love to hear from you.

Get in Touch

Timeline


1. Sign NDA
If you meet the minimum requirements we'll send you a digitally-signable NDA so we can talk confidently about your specifics.
2. Valuation
As part of this process we'll look at the state of your company and get to know a little bit more about you, your clients and your ethos. If it's a fit we'll negotiate a price that works for both parties.
3. Exchange Contracts
We'll agree a sale date and schedule of events. This lets us line up the resources required to ensure a smooth transition, such as new hardware, staff etc and plan the merger.

Migration: What To Expect


We'll work with you to notify your clients about the upcoming change of ownership and provide a timeline. This information will include where our support resources are located as well as our contact email and phone number. In a vast majority of cases we are will be able to migrate clients over without downtime, out of peak hours.

If you'd like to get a better idea of how we handle migrations, have a look at the email PurpleCloud customers received when we acquired the company. Feedback from every acquisiton we've ever done has been very positive because of the work we do beforehand.

I hope that you'll decide to talk to us.

Kind regards,

Simon Blackler

Simon Blackler - Founding Partner