Deluxe (NYSE: DLX), a company that provides solutions to help businesses pay, get paid and grow, has sold the remainder of its web hosting and logo design businesses to global provider of web hosting and cloud services HostPapa. Subject to compliance with customary closing conditions, the deal is expected to close in the first quarter. Financial terms of the acquisition were not disclosed.
Deluxe web hosting company acts as a provider for email hosting clients and small business clients around the world. Through its Deluxe Logo Design brand, Deluxe also offers white-label web hosting services for enterprise clients, as well as logo solutions and services for small business clients. The acquisition would boost HostPapa’s scalable offerings in several areas while expanding its 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 around the world. Based in Burlington, Ontario, it was founded in 2006. The company offers its web hosting services primarily to SMBs.
“HostPapa is committed to further developing our expertise in providing exceptional solutions to small businesses, and this transaction is a huge step forward in our growth,” said Jamie Opalchuk, HostPapa founder and CEO. “Deluxe has created world-class logo design and web hosting services, and we are excited to add these offerings to our mix to continue helping our clients meet their branding and digital needs. We look forward to working with the Deluxe team to transition their processes, customers and people into the HostPapa family.”
Web Hosting Recall
“As Deluxe becomes more focused on our core payments and data business, we sought a business leader at scale who 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 complete withdrawal from the web hosting and logo design industries and comes on the heels of Deluxe’s sale of Australian company Hostopia to Newfold Digital last year. Deluxe Web Hosting and Deluxe Logo Design employees will migrate to HostPapa upon closure.