US webhost and managed services provider Hostway has bought four-year-old Sydney hosting company and domain registrar IntaServe for an undisclosed sum.
IntaServe chief Amin Kroll has taken over as managing director of Hostway in Australia following the companies’ merger, which was officially completed last week.
Hostway inherited IntaServe’s Sydney office and 10 staff and would add some 220-240 channel partners to its own 100, Kroll said.
“The company will have more resources behind it, both technically and financially,” he said.
“IntaServe traditionally had a strong channel partner and reseller base, so that will certainly have a great impact on our direction locally.”
Hostway had been mainly a Linux shop while IntaServe had focused on Windows.
Bringing the two skillsets together would broaden Hostway’s portfolio and appeal to SMBs while opening a path to more medium-sized, corporate and government customers, Kroll said.
“It allows us to focus more closely on more complex, advanced hosting opportunities, [such as] hosting applications,” he said.
IntaServe had not sought a buyer but had seen the offer as a good opportunity in the current market. Competition and consolidation in the market were increasing, he said.
Former Hostway general manager Michael Farrell was seeking other employment but would also move temporarily into a consultancy role for the merged entity, Kroll said.
IntaServe would maintain its own branding for the foreseeable future, Kroll said.
Hostway would become an Australian accredited domain registrar as a result of the deal.
IntaServe had seen 50 per cent year on year growth and claimed an end-user customer base of some 7000 SMBs.
Lucas Roh, chief executive at Hostway, said Australia was a growth market. Hostway -- which claims to have been profitable every quarter since it began in 1996 -- had also bought Sydney-based GlobalHost and Dedicated Hosting since launching here in 2003.
“We wanted to build on our commitment to the local market with more resources, a strong reseller network and provision for a greater range of services,” Roh said.