How to Sell Your Hosting Business Profitably

The hosting market is notoriously competitive. Not every business can find its niche and remain profitable for long. Many smaller providers struggle with rising costs, customer churn and competition from larger brands — so much so that a significant number of hosting businesses eventually close or sell.

Closing your company for good is not your only option — and definitely not the best one. Instead, you can sell your servers, assets and customer base, or become part of a larger company.

By doing so you will still earn from the value you’ve built, and your clients won’t suddenly lose their websites or services. Let’s look at what the process of selling a hosting company looks like, what the benefits are, and how to get the best deal for your business.

Preparation

Before approaching buyers, prepare your business thoroughly. The more data and clarity you can present, the more confidence a buyer will have in your business, and the higher the price you’ll get.

To determine how much you can get for your hosting company, buyers will typically look at:

Buyers may also evaluate the strength of your infrastructure, documentation and IP (intellectual property) ownership — these factors can speed due diligence and support a higher price.

Acquisition Process

Every acquisition is different, but most follow a similar structure. The steps below show common industry practices — that's how the acquisition happens with Site.pro

Finding Buyers

There are several ways to find companies interested in acquiring hosting businesses. Large hosting groups and consolidators purchase smaller hosts to increase customer count, add services or enter new markets. Three of the biggest ones are Hosting.com, Namespace and Hostafrica. These companies have histories of hosting acquisitions and are a good starting point for outreach if your company is big enough.

Hosting.com

Hosting.com is a company that consolidates many brands under one roof. It works worldwide and expand by purchasing hosting companies from different countries. In the last years, it bought over 30 companies. Hosting.com absorbs the acquired company’s customer base, technology and support teams. This involves migrating the acquired customers onto its own infrastructure and branding under the Hosting.com or related to it brand names.

NameSpace.com

NameSpace.com is an international internet services company headquartered in Luxembourg. It grows through targeted acquisitions and focuses on adding complementary hosting infrastructure in Europe. After the acquisition, it retains key technical teams and expertise from acquired companies.

Hostafrica.com

HostAfrica.com is a leading African web-hosting group that expands primarily through the acquisition of regional hosting providers across the continent. Its strategy focuses on integrating established local hosts to strengthen market presence in countries such as Nigeria, Kenya and South Africa. After an acquisition, the company typically migrates services onto its consolidated platform.

Site.pro

If your company has fewer than ~5,000 customers, smaller buyers like Site.pro are a good match. They specialise in acquiring businesses that larger strategic buyers might overlook

Site.pro is unique, because:

If you're ready to sell, contact our sales department. We guarantee superb no-hassle migration for your websites and clients.