Web Drive Acquires Openhost

PRESS RELEASE: Web Drive Acquires Openhost

12 January, 2007

Leading Auckland-based web hosting provider Web Drive has acquired the web hosting and domain name business of Openhost Limited of Tauranga, a leading player in the discount market serving more than 3,000 customers.

Openhost, which is less than 18 months old, was started in 2005 and has quickly grown to become a leading provider in New Zealand's discount hosting market. The acquisition means further consolidation of the hosting industry in New Zealand, especially for Web Drive, who acquired the 1,500 customers of Christchurch-based provider Webbase last year.

"We're very excited about taking over Openhost," says Managing Director Daniel Williams. "While Web Drive offers a premium service, the Openhost brand will strengthen our position in the discount market, and that's a really important place to be because it's such a fast-growing market."

Williams's comments echo what has been happening in the United States over the last few years where price competition amongst service providers has resulted in service offerings for as little as a few dollars per month.

As a major part of their growth strategy these acquisitions have seen the company's revenues increase 150% in the last two years, and late last year Web Drive was named one of New Zealand's fastest growing companies in the Deloitte Fast 50.

Web Drive, now a mutli-million dollar business, was started by 5 teenage friends in 1997 and this year celebrates 10 years of service.

While most of their 8,000 customers are small to medium-sized businesses, corporates are starting to take notice too. In August last year CallPlus and Slingshot signed a deal with Web Drive for the provision of Hosting and Domain services to its 130,000 customers.

The company itself has been an acquisition target of several larger ISPs, but Williams and fellow director Steve Hogg maintain they still have many more goals to achieve with the business before they are ready to retire.

"Deals like TradeMe last year have given the industry a renewed enthusiasm for what we're doing," says Williams. "The growth of the Internet is only increasing and there are plenty of more opportunities waiting to be discovered."

This latest deal is Web Drive's 11th acquisition in 3 years.

ENDS

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