LeaseWeb USA acquires hosting provider

Thu, 19th September 2013, 17:35

LeaseWeb, one of the larger players in the hosting world, announced that it got slightly bigger when its U.S. subsidiary recently acquired Shore.Net, a hosting provider that has served customers for over 18 years and is based just north of Boston in Lynn, MA.

Over 500 customers were acquired in the transaction, substantially increasing the number of customers served by LeaseWeb USA. LeaseWeb also hired all employees. All acquired customers have been successfully migrated from the hosting facilities to LeaseWeb USA’s state-of-the-art data center.

LeaseWeb entered the U.S. market in January 2011 with a new subsidiary, headquartered in Manassas Virginia and its first data center. This geographic expansion enabled LeaseWeb to extend its reputation as a global provider of hosting infrastructure services to the United States and, subsequently, continue its trend of success that originated in Europe. 

William L. Schrader, CEO of LeaseWeb USA, says:

We have enjoyed substantial organic growth, exceeding 100% annually during the past 3 years. The acquisition is an excellent match for our service offerings and ensures that we are now prepared to continue that growth rate. 

Closer look at Shore.Net

Back in 1999 (editors note: yep going way back to the beginning of the internet), Shore.Net received $500,000 from the Massachusetts Economic Stabilization Trust and the Lynn Economical Development and Industrial Corp. for the purpose of continuing its growth and hiring of highly skilled technical staff. A year later it sold out to Primus Telecommunications and became Primus Managed Hosting Solutions.

In 2009, Shore.Net was purchased back by original founder Lowell Gray’s Pea Island Computing Corp, and became the new Shore.Net (editor's note: new and improved!) which focused on colocation, server hosting services and cloud computing infrastructure supporting software professionals and their clients.

Using the Dollar Times Inflation Calculator, (hosted on BlueHost nameservers if you are curious), that 500K the good taxpayers of the state of Mass threw in to 'grow' the company would be $700,430.14 in today's dollars, or based on the 500 client figure provided by LeaseWeb, $1400.86 per client . Although we know the cost to the taxpayers, less clear is the cost to LeaseWeb USA. The terms of this transactions was not disclosed.

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