This acquisition has been announced on both companies' websites. Under the terms of the deal, expected to close in September, DigitalOcean has agreed to buy Cloudways for $350 million in cash and will pay a significant portion of the funds over 30 months following the closing.
Aaqib Gadit, Co-founder and CEO, said,
We have worked closely with DigitalOcean since 2014 and have developed a strong friendship and partnership with their team since that time. Both companies are uniquely aligned with a focus on simplicity and making life easier for our SMB customers and I have no doubt that both culturally and technologically, DigitalOcean will be a great home for our customers and our employees.Cloudways' CEO
Yancey Spruill, CEO of DigitalOcean, said:
Cloudways is expected to generate more than $52 million in revenue in fiscal 2022, representing a three-year compound annual growth rate of over 50%. And with this acquisition, DigitalOcean forecasts Cloudways to contribute between $13 and $15 million of revenue in fiscal 2022 for them. Together, DigitalOcean and Cloudways will serve over 124,000 customers paying over $50 per month, representing approximately 84% of the pro forma company's total revenue.
Current Cloudways customers will see no changes to their services. There is no change at all. However, as an existing customer at Cloudways, I really hope we don't have to see any increase in Cloudways's pricing in the future.