Web hosting provider Sitestar lately announced it has purchased the assets of Internet service and hosting provider Comcation. Sitestar is apparently pursuing a quantity of comparable acquisitions in 2008.
The transaction is the first chief acquisition since last November’s milestone purchase of nearly 40,000 subscribers sold and marketed under the Nationwide Internet, InReach Internet and DFW Internet brands that were previously held by Maryland-based MobilePro. The biggest deal in Sitestar history, the purchase thought to have doubled the company’s income, on top of helping to expand the company through added customer acquisitions and develop new-growth initiatives in Web hosting services and voice over Internet protocol.
Sitestar CEO Frank R. Erhartic, Jr stated “Comcation’s blend of access and hosting customers represents the ideal customer composition that Sitestar is targeting for acquisition. Our strategy is to continue to leverage our economies of scale within the narrowband segment to generate revenue that will drive new growth in opportunistic market segments such as web hosting which, like dial-up, has strong profit margins but, also, the added benefit of customer ‘stickiness.’ We welcome the former Comcation customers to Sitestar and look forward to providing them with unparalleled service and support.”
Category: Webhosting News
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