HOSTAFRICA.CO.ZA acquires VPS Networks Pty Ltd., including its employees, technical equipment and customers, effective December 1, 2016. This acquisition will strengthen the strong cloud focus of the South African Hosting Provider. The acquisition is backed by the Swiss investment company Concorde Industries.

VPS Networks is one of South Africa’s oldest providers of virtual servers. The private company has vast expertise in cloud solutions and is able to tailor a service to any server hosting requirement. It offers a fully-automated portfolio of products, including small development servers and larger cloud servers for both Windows and Linux. Both companies, HOSTAFRICA and VPS Networks, share the same vision with a strong focus on customers and technical innovation.

“VPS Networks grew more than 30% in the past year and we have been searching for a strong partner to facilitate continued growth,” says David Venter, Managing Director of VPS Networks. “And we found just such a partner in HOSTAFRICA. We couldn’t be happier to be part of the team.”

Venter will join the HOSTAFRICA team as CTO and his team will ensure that HOSTAFRICA goes from strength to strength. Current VPS Networks customers will be relieved to hear that nothing about VPS Networks’ services will change, apart from the invoicing, which will now be done by HOSTAFRICA.

HOSTAFRICA’s build and buy strategy

As a significant milestone, HOSTAFRICA’s major acquisition of VPS Networks marks an important step in fostering the company’s growth in the South African hosting market. HOSTAFRICA is focusing on organic growth while completing its portfolio with strategically relevant acquisitions.

“The takeover of VPS Networks by HOSTAFRICA is a coup for the fast-growing South African hosting industry,” says Michael Osterloh, CEO of HOSTAFRICA. “The demand for cloud infrastructure continues to grow year on year. HOSTAFRICA believes that moving forward with an acquisition will help provide an extended and updated product portfolio to its clients, keeping them consistently competitive and relevant.”

The acquisition was supported by the Swiss investment company Concorde Industries, which became a shareholder in HOSTAFRICA during the acquisition. In partnership with HOSTAFRICA, the new investor is planning further strategic acquisitions in the South African hosting market.