Web HostingHostPapa

overview

Established in 2007 and headquartered in Toronto, Canada, and with operations in more than 30 countries, HostPapa Inc. (www​.host​pa​pa​.com) is a leading provider of cloud services (domain and website hosting, security, data center, and other cloud- and web-based services) to small and medium companies.

The Company boasts more than 200k customers worldwide and hosts more than 500k websites, including government departments in the U.S. and Canada. HostPapa currently operates 20 regionalized websites geo-targeted to specific countries. Its 250+ staff supports its customers in 4 languages 24÷7÷365, across 10 currencies. It has nearly 12,000 reviews and a 5‑star rating on Shopper Approved and is ranked favorably on numerous review websites of cloud services companies.

acquisition strategy & capabilities of hostpapa

HostPapa has successfully acquired and integrated more than 10 companies since 2013. The Company is accelerating its pace of M&A within its core services.

HostPapa offers a smooth transition for owners, employees, and clients, with a high certainty of closing given its financial strength, deal experience, and streamlined process.

The Company does not have a fixed time investment horizon, as it looks to create value over the long term — it does not face the same pressures as private equity firms to return capital to their investors within a few years.

HostPapa’s M&A objectives are to (1) continue to grow its global geographic footprint; (2) generate economies of scale; and (3) enhance its current service offerings.

HostPapa has retained FirePower Capital to identify and engage with new opportunities.

previous acquisitions

Svwh 2048x614

Silicon Valley Web Hosting

Acquired
2021

Location
U.S.

Canvas Host

Canvas Host

Acquired
2020

Location
U.S.

Host Labs

HostLabs

Acquired
2020

Location
U.S.

Data Deposit Box

Data Deposit Box

Acquired
2020

Location
Canada

Lunarpages

Lunarpages

Acquired
2019

Location
U.S.

Korax

Korax

Acquired
2020

Location
Canada

Mezzo Host e1614188935736

Mezzo Host

Acquired
2020

Location
Canada

Web Serve e1614189610386

webserve

Acquired
2013

Location
Canada

what hostpapa looks for in targets

SERVICES OFFERED

  • Web / domain hosting, colocation providers, VPS, data centers, website security and recovery, cloud solutions, fixed wireless, ISPs, hosted voice and other complementary services.
  • Little to no exposure to website design / creative, or other services that are very intensive in terms of human resources.

CORPORATE GOODWILL

  • Strong corporate reputation in its market(s).
  • Technological edge.
  • Defensible customer relationships and long-term contracts and/​or repeatable / recurring revenue streams.

FINANCIALS & OUTLOOK

  • Strong preference for US$1M-$10M, up to US$30M in revenues
  • Promising growth prospects preferred, or targets that have under-invested in their growth initiatives and require a partner to do so.

GEOGRAPHY

  • USA, Canada, EU member countries, UK, Switzerland, Mexico, Chile, Costa Rica, Colombia, select Caribbean countries, South Africa, India, Singapore, UAE, Australia, New Zealand.

ACQUISITION STRUCTURE

  • Flexible with respect to asset and/​or share purchases. Depends on sellers’ circumstances (e.g. retirement, or desire to partner to accelerate growth) and the strength of the target. Will structure transaction in an optimal way — there is no formula”.

This disclaimer shall apply to FirePower Corp Dev Inc., its partners, employees and agents (collectively “FirePower”). The information contained in this document (the “Information”) is for informational purposes only. FirePower makes no representations or warranties as to the accuracy or completeness of the Information. FirePower does not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by the recipient in reliance on the Information or for any decision based on it. The Information cannot be relied upon to cover the recipient’s specific situation and accordingly the recipient should not act or refrain from acting upon the Information, without obtaining specific professional advice or performing such due diligence steps as the recipient may solely deem necessary. The information may change at any time without notice or obligation to the recipient by FirePower. NEITHER THIS DOCUMENT NOR ITS DELIVERY TO AN INTERESTED PARTY SHALL CONSTITUTE OR BE CONSTRUED TO BE AN OFFER TO SELL ANY SECURITIES.

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