DigitalOcean boosts web hosting offering with $350m Cloudways acquisition

DigitalOcean logo in white on a blue background
(Image credit: DigitalOcean)

DigialOcean has expanded its web hosting capabilities by acquiring cloud hosting firm, Cloudways.

The company says the $350 million deal will help businesses that are looking for easier ways to build and scale their digital footprint.

The pair have worked together since 2014, with the cloud hosting company utilizing DigitalOcean infrastructure to power approximately 50% of its customers. 

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Transaction for SMBs 

Maltese firm Cloudways provides onboarding management tools for SMBs looking to outsource their on-ramp to the internet.  

“We have worked closely with the DigitalOcean team since 2014 and are now incredibly excited to officially be a part of the company,” said Aaqib Gadit, co-founder and CEO at Cloudways. 

“SMBs love simplicity, performance, predictability, affordability, and great support. Together with DigitalOcean, we can turbocharge our mission of helping SMBs grow through our cloud offerings.”

DigitalOcean plans to expand its services with the Cloudways transaction, which will include increased options for digital agencies, ecommerce websites, blogging sites, freelance developers, website builders hosting on WordPress, PHP and Magento

“SMBs represent more than 50% of global gross domestic product (GDP) and spend $70 billion on cloud infrastructure today. With this acquisition, we are making it easier to launch, build and scale a business on DigitalOcean,” said Yancey Spruill, CEO at DigitalOcean. 

“Cloudways and DigitalOcean share values around simplicity, community, openness and support that are vital attributes to how we differentiate in the marketplace. Together, we will be focused on providing a simple, easy, intuitive and trusted platform to better serve SMBs so they can build their businesses and pursue their dreams of entrepreneurship.”

In addition to expanding DigitalOcean’s technology and tooling, the acquisition of Cloudways will also increase the company’s global workforce by 30%.

“SMBs represent more than 50% of global gross domestic product (GDP) and spend $70 billion on cloud infrastructure today. With this acquisition, we are making it easier to launch, build and scale a business on DigitalOcean,” said Yancey Spruill, CEO at DigitalOcean. 

“Cloudways and DigitalOcean share values around simplicity, community, openness and support that are vital attributes to how we differentiate in the marketplace. Together, we will be focused on providing a simple, easy, intuitive and trusted platform to better serve SMBs so they can build their businesses and pursue their dreams of entrepreneurship.”

The transaction is expected to close in September 2022, with DigitalOcean forecasting Cloudways to contribute between $13 to $15 million of revenue in fiscal 2022.

Abigail Opiah
B2B Editor - Web hosting & Website builders

Abigail is a B2B Editor that specializes in web hosting and website builder news, features and reviews at TechRadar Pro. She has been a B2B journalist for more than five years covering a wide range of topics in the technology sector from colocation and cloud to data centers and telecommunications. As a B2B web hosting and website builder editor, Abigail also writes how-to guides and deals for the sector, keeping up to date with the latest trends in the hosting industry. Abigail is also extremely keen on commissioning contributed content from experts in the web hosting and website builder field.