Market Commentary

  • The strong wave of consolidation in the second half of 2018 has continued into Q1 2019
  • The rising adoption of cloud-based services is one of the key factors underpinning market growth in the near-term, with various companies adopting cloud computing solutions in order to reduce costs, and achieve flexibility and scalability
  • The hyperscale data center market is set to grow from $20 billion in 2018 to over $65 billion by 2025, driven by rising demand for big data and cloud computing solutions1
  • Global IT Services and Webhosting peers outperformed global equity markets on average, whilst performance of other sub-sectors was more mixed
  • Significant M&A activity in the Managed Services sub-sector with a number of companies due to come to market

Hosting and Managed Services Taxonomy

Web Hosting

Refers to a service in which a vendor offers the housing of business-to-business or business-to-consumer e-commerce websites via vendor-owned shared or dedicated servers and applications for enterprises at the provider-controlled facilities


Managed Services

Refers to the delivery of network, application, system and e-management services across a network to multiple enterprises, using a “pay as you go” pricing model


IT Outsourcing

Refers to the use of external service providers to effectively deliver IT-enabled business process, application service and infrastructure solutions for business outcomes


Selected Recent HW Hosting and Managed Services Transactions

screen_shot_2019-05-03_at_12.43.03_pm.pngProvider of mass hosting services for SMEs, including web hosting, domains, e-commerce and application solutions with leading positions in Belgium and Denmark and a growing presence in the Netherlands, Sweden and Switzerland





screen_shot_2019-05-03_at_12.44.05_pm.pngProvider of services allowing SMEs to move their IT infrastructure and operations into the cloud, as well as providing end user support and consulting as part of a full-service IT offering





screen_shot_2019-05-03_at_12.44.34_pm.pngProvider of web domains, shared web hosting and value-added services with leading positions in Sweden and the Czech Republic, and presence in Norway, Serbia, Slovakia, Spain, Netherlands, Germany and the UK





screen_shot_2019-05-03_at_12.45.40_pm.pngProvider of managed technology services with national scale in the US and the capability to design, deploy and support technology solutions from cable to cloud





screen_shot_2019-05-03_at_12.46.15_pm.pngProvider of SME focused hosting and cloud solutions, including domains website hosting, email for smaller customers and managed servers and applications for larger customers






Provider of managed hosting and cloud solutions specialised in managed cloud hosting, desktop-as-a-service, security and connectivity

Market Observations






Select Hosting and Managed Services M&A Transactions


Combell’s Acquisition of iXL Hosting3,4

  • Netherlands-based provider of web hosting, domain names and servers services
  • iXL Hosting has more than 8,000 customers
  • The acquisition will enable Combell to strengthen its position in the Dutch market and leverage iXL’s services and expertise across the combined customer base



LINKBYNET’s Acquisition of Objectif Libre3

  • France-based specialist in consulting, training and integration of OpenStack, Ansible and Kubernetes technologies
  • Objectif Libre has experienced constant growth since 2009
  • The acquisition further strengthens LINKBYNET’s organic growth and is part of the development strategy of its consulting division, addressing the Cloud and DevOps transformation markets



DXC Technology’s Acquisition of EG’s Service Business3​

  • Denmark-based provider of information technology solutions to companies in production, construction, retail, trade and transport, government, professional services and utility sectors
  • The business employs c. 570 people across the Nordics
  • The acquisition strengthens DXC’s position in the Microsoft Dynamics 365 systems integration segment



Tucow’s Acquisition of Ascio Technologies3

  • Denmark-based provider of domain registration and management solutions
  • Ascio manages a total of more than two million domain names and is responsible for the provision of Domain Portfolio Management services indirectly through more than 600 domain partners
  • The acquisition will enable Tucows to add more than two million domains under management and approximately 500 active resellers, while enabling Ascio to focus on its resellers



Candidator DGC’s Acquisition of Solid Park3

  • Sweden-based provider of IT operations to SMEs in the private and public sectors, as well as offering advanced consulting services within system development, system management and IT infrastructure
  • Solid Park AB has workforce of 200 employees
  • The transaction will strengthen Candidator DGC’s position in Sweden and further increase Solid Park’s service offering

IT & Tech-Enabled Services – Trading Comparables


As of March 31, 2019 ($ in millions)



IT & Tech-Enabled Services – Transaction Activity

Select Recent M&A Transactions*3,4


*Conversion to USD based on FX rate as of announcement date

IT & Tech-Enabled Services – Representative Landscape

Representative IT & Tech-Enabled Services Providers


1. Global Market Insights. 

2. Factset; market data as of 31 March 2019

3. Merger Market

4. HW proprietary transaction information


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