Fergie's Tech Blog

Parent of 1&1 Internet Buys UK's Fasthosts

Via Netcraft.

Germany's United Internet, the parent company of 1&1 Internet, has acquired leading UK hosting provider Fasthosts for 61.5 million pounds ($114.7 million US). The all-cash deal is the latest in a flurry of major deals in the hosting industry, and continues a trend of consolidation among European hosts.

1&1 expanded into the British hosting market in 2003, and had 280,000 UK customers at the end of 2005. The acquisition of Fasthosts, which was already the top United Kingdom host with 299K active sites, gives the combined company a dominant position in the UK market.

It also brings 1&1 nearly dead even with Go Daddy for bragging rights as the world's largest hosting company, as measured by hostnames. 1&1 Internet houses 5.52 million hostnames this month, compared to 6.06M for Go Daddy. The two providers will likely be in a virtual dead heat once the Fasthosts deal closes, which is scheduled to happen before the end of this month.

posted by Fergie @ 5/10/2006 04:46:00 PM