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SAFI Technologies Reverse Aquisition Trend

SAFI Technologies Reverse Aquisition Trend

Christchurch technology company successfully acquires US web hosting business.

17 June 2008. Christchurch, New Zealand. - SAFI Technologies have reversed the trend of US companies buying out successful New Zealand businesses, by acquiring US-based hosting and domain company, Host World Wide.

"Web hosting is a large and relatively mature market in the US, so we knew there were good opportunities to grow through acquisition," says SAFI Technologies' Managing Director Tim Johnson.

"It is certainly easier than growing a brand from scratch in a new market."

Since the purchase in 2007, SAFI Technologies has doubled the turnover of the South Carolina-based company and grown the number of hosted websites 46%.

Having already purchased two New Zealand-based hosting businesses, Mr Johnson says Host World Wide met many of SAFI Technologies' core business objectives.

"They were running hosting and administration systems that were identical to our existing systems, its size was manageable for us to take over, their in-house expertise was very complimentary to ours and the price of the business was within our budget."

In addition to hosting, SAFI Technologies have also been able to provide their software development and design services to its new US clients - something Host World Wide could not previously offer in-house. 

"The US hosting market is in many ways considerably ahead of the New Zealand hosting market. Being so intricately involved in the US market gives us great insight into what the New Zealand market might look like in two to five years - which is very exciting," explains Mr Johnson.

"The strategic and competitive advantage that will come from this acquisition will ultimately benefit our New Zealand customers".

He also likes the fact that having a revenue stream that is external and immune to New Zealand's economic conditions puts SAFI in a strong position.

A number of changes have been made to the company since its acquisition, including employing the previous owners in operational roles.

The company is now seeking a third employee for their US office.

Mr Johnson describes Host World Wide as being a completely customer-focused company. "The acquisition has enabled better support for both our US and New Zealand clients who benefit from our extended help-desk hours that cater for both time zones."

The company also offers clients live phone support which is a rarity in the hosting industry.

About SAFI Technologies

Established in 2003, SAFI Technologies is a Christchurch-based technology company. It provides a complete range of web services, from building back-end systems right through to the online marketing of websites.

They have delivered online systems for a number of sectors including property, retail, technology and government agencies.

ends

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