Pakistan’s Cloudways Will Be Acquired By DigitalOcean For $350 million.

Cloudways, a leading managed cloud hosting and software as a service (SaaS) provider for SMBs in Pakistan, will be acquired by cloud computing giant DigitalOcean for $350 million.

The acquisition will ease workflows for small to medium-sized businesses looking for more efficient methods to develop and grow their digital businesses.

For certain SMBs looking to outsource their on-ramp to the internet, Cloudways offers simple onboarding and day-to-day management. This allows them to offload the complexities of cloud infrastructure so they can spend more time managing and growing their businesses.

Pakistan's Cloudways Will Be Acquired By DigitalOcean For $350 million.

With the acquisition of Cloudways, DigitalOcean’s serviceable market among international SMBs is increased, and possibilities for digital agencies, eCommerce websites, bloggers, independent developers, and builders hosting on WordPress, PHP, and Magento are expanded. According to W3Techs, WordPress is the most widely used content management system (CMS) and runs 43% of all websites on the internet.

Entrepreneurs and SMBs use Cloudways to boost their infrastructure and application management’s performance, value, support, dependability, and flexibility. As a result, they will be able to save time and money while expanding their businesses. With an open and adaptable platform, an amazing price-to-performance ratio, and an outstanding customer experience, Cloudways offers a unique product.

Since 2014, DigitalOcean and Cloudways have worked closely together; at the moment, around half of Cloudways’ customers are powered by DigitalOcean infrastructure. With an NPS of 71, which leads the market, Cloudways services a global and expanding client base. Over 124,000 customers that pay more than $50 per month will be served by DigitalOcean and Cloudways collectively, accounting for over 84% of the pro forma company’s total revenue.

“SMBs represent more than 50% of global gross domestic product (GDP) and spend $70 billion on cloud infrastructure today. With this acquisition, we are making it easier to launch, build and scale a business on DigitalOcean,” said Yancey Spruill, CEO at DigitalOcean.

“Cloudways and DigitalOcean share values around simplicity, community, openness, and support that are vital attributes to how we differentiate in the marketplace. Together, we will be focused on providing a simple, easy, intuitive, and trusted platform to better serve SMBs so they can build their businesses and pursue their dreams of entrepreneurship,” Spruill added.

With strong client metrics and a rapidly expanding business that generates free cash flow, Cloudways has achieved success.“Importantly, we are excited to add Cloudways to the DigitalOcean family as they not only share our vision for the SMB market opportunity but are also a Rule of 50 business that shares our commitment to delivering compelling returns for our investors.” Spruill added.

“We have worked closely with the DigitalOcean team since 2014 and are now incredibly excited to officially be a part of the company,” said Aaqib Gadit, co-founder and CEO at Cloudways.

“SMBs love simplicity, performance, predictability, affordability, and great support. Together with DigitalOcean, we can turbocharge our mission of helping SMBs grow through our cloud offerings,” he added.

The deal is expected to finalize in September, and according to DigitalOcean, Cloudways will bring in between $13 and $15 million in revenue during the 2022 fiscal year.