April 2nd, 2004

The board of Host Europe (hosteurope.com) has recommended that the pan-European Web hosting provider accept an acquisition offer by London-based Web hosting and Internet communications provider Pipex Communications (pipexcommunications.net). The offer is for approximately £31.18 million in cash.

Pipex said it expects the acquisition to give it "additional focus" on the hosting and managed services market, bringing its current service offerings more balance. The company also anticipates that integrating Host Europe's Web hosting operations will help it achieve additional cost savings.

"This acquisition will expand our hosting services, further improve the mix of products that we currently offer our customers and increase our gross margin," says Peter Dubens, chairman of Pipex. "It is an acquisition which reinforces our position in the UK telecommunications sector." Abby Hardoon, CEO of Host Europe said being a part of Pipex will bring stability, increased data center capacity and access to a broader customer base.

"We are delighted that the value of Host Europe is being recognised by Pipex Communications through its offer. The acquisition will combine Host Europe's strengths in hosting and Internet services with a strong, ambitious and growing telecommunications services business, says Hardoon. "Host Europe and Pipex Communications share a belief that customers are increasingly looking to take telecom services from a single supplier and that broadband connectivity and hosting represent a compelling bundled offering."

Host Europe, a publicly listed company, is one of Europe's leading Web hosts, providing scalable hosting solutions, server colocation, global domain name registration and e-commerce services to the SME market.

Source: Web Host Industry Review