ASX-listed Internet company ehyou.com has acquired Firmware's Web hosting business in an attempt to increase the customer base of its Internet-hosting subsidiary, Ozhosting.com.
Its eighth acquisition of a small Web-hosting company in 12 months, ehyou.com acquired the Firmware business for an undisclosed sum. Ehyou hopes the acquisition will drive further economies of scale within OzHosting and allow it to grow its business using its existing infrastructure.
As part of the agreement, OzHosting will also become the exclusive Web hosting partner for Firmware for the next two years. Ehyou regards this agreement as more valuable than the acquisition itself, said Domenic Carosa, ehyou's CEO. "We saw significant potential in the exclusive relationship with them."
According to Carosa, there is plenty more cash in the coffers, with over $5 million in cash reserves as of the end of September. Ehyou.com will continue on its acquisition trail until it is one of the top players in the Web hosting marketplace, he said.
"We want to be number two in the market in a relatively short period of time. We will keep buying until there's no acquisition opportunities left in the Web hosting space."
The purchase of the Firmware business follows ehyou.com's acquisition of a string of Web hosting companies, including Ocean Internet, Super-hosting.com.au iAsiaworks, Domains N' Servers, Ice Blue and Moniker.