Deluxe (NYSE:DLX), a company delivering solutions to help businesses pay, get paid, and grow, has sold the remainder of its web hosting and logo design businesses to global web hosting and cloud service provider HostPapa. Subject to the fulfillment of customary closing conditions, the deal is anticipated to conclude in the first quarter. Financial terms of the acquisition were not disclosed.
The Deluxe web hosting company acts as a supplier for email hosting clients and small business clients all around the world. Through its Deluxe Logo Design brand, Deluxe also offers white label web hosting services to enterprise customers as well as logo solutions and services to small company clients. The acquisition would boost HostPapa’s scalable offering in several areas while extending their web hosting and design offerings in numerous markets.
HostPapa is a Canadian web hosting company that provides shared hosting, cloud hosting, VPS hosting, and dedicated server solutions to customers worldwide. Based in Burlington, Ontario was founded in 2006. The company is delivering its web hosting services mainly to SMBs.
“HostPapa is committed to further building on our expertise in providing exceptional solutions to small businesses and this transaction is a large step forward in our growth,” said Jamie Opalchuk, founder and CEO of HostPapa. “Deluxe has built premiere web hosting and logo design services, and we are excited to add these offerings to our mix to continue to help our customers meet their digital and branding needs. We look forward to working with the Deluxe team to transition their processes, clients, and people to the HostPapa family.”
Withdrawal from the Web Hosting Market
“As Deluxe concentrates more on our core business of payments and data, we sought a scaled business leader that could continue to grow our web hosting and logo design businesses,” said Garry Capers, President of Cloud Solutions for Deluxe. “Deluxe is extremely proud of our team and how they have enabled small businesses to reach millions of customers. This move further streamlines our portfolio and adds more focus to our growth areas of payments and data.”
This deal marks Deluxe’s total withdrawal from the web hosting and logo design industries and comes on the heels of the sale of Deluxe’s Australian Hostopia company to Newfold Digital last year. Employees of Deluxe Web Hosting and Deluxe Logo Design will migrate to HostPapa as of the shutdown.