Lloyd’s Development Capital (LDC) recently announced the acquisition of the majority stake in the UK2 Group, an industry-leading web hosting provider. LDC is a private equity segment of Lloyd’s Trustee Savings Bank which is the third largest bank in the United Kingdom. The group paid $ 77 million for the majority stake and partnership with the current management team.
Background about UK2 Group
The UK2 Group is a global provider of online web hosting services and domain name registration. Found in 1998, the group is best known for its acquisitions of large hosting properties as well as for developing its own innovative services such as, 100TB.com and VPS.NET.
Since the conception of the founder brand, UK2.net, UK2 has played an active role in the web hosting game. Since 1998, the company has expanded the number of brands, services, employees, products and customers. Currently, UK2 has sold over 1 million domain names, have acquired thousands of shared and dedicated hosting customers and operate from many state-of-the-art data centers across the UK and U.S.
The company’s last company acquisition was in August of 2008 in which they absorbed WingSix, a popular web hosting provider based out of Chicago, Illinois. The focus of WingSix is to provide exceptional dedicated customer service. The UK2 Group has acquired many web hosting entities on the Internet since their birth.
New Executive Chairman Appointed
The current CEO of UK2 Group will soon be leaving the organization to fulfill the new role as CEO of OnApp, a cloud hosting service that bears many similarities to the innovative technology structure behind VPS.NET. At the announcement of the CEO leaving, the Chief Operating Officer of Thus Group plc was appointed to the executive chairman role on the board of directors.
Future Investing Activities
Now that a state-backed bank is supporting the UK2 Group and they have developed a reputation for acquiring other hosting companies, it is likely the organization will become involved in M&A activities in the near future. Therefore, this acquisition may prove to be an excellent opportunity for UK2 Group to significantly expand and grow.
Since LDC plans to keep all management staff employed, it appears as if this was an excellent move for both parties. With the backing of one of the largest banks in the United Kingdom, UK2 Group is expected to significantly expand thus offering new services and products to their customers.