Hello! Here’s some huge news in hosting--CVC Capital Partners purchased a MAJORITY interest in Namecheap for $1.5 billion. This is significant especially if you have ever used Namecheap for domains or hosting.
The good news is the founder will stay on so leadership will not change at Namecheap, but the infusion of money could allow Namecheap to grow faster or pursue other ambitious ventures.
For smaller hosting providers, this may mean instigated competition. Companies supported by CVC may offer cheaper prices, and better service. This may make it more difficult for smaller companies to keep pace and could result in them either not competing or not competing to a point that you and I notice (in the services we need).
Yet, don't forget to still price shop. Companies such as GoDaddy or SiteGround may still have options that better suit your need.
What is your take on this acquisition? Do you think that Namecheap might be able to become better as a Company or evolve too much? Regardless, if hosting and domains mean anything to you, monitoring the situation would be worthwhile.
What This Means for Namecheap
Founded in 2000 as a simple domain registrar, Namecheap eventually became a full hosting company, with website hosting, security tools and other online service. The company saw significant growth last year.The good news is the founder will stay on so leadership will not change at Namecheap, but the infusion of money could allow Namecheap to grow faster or pursue other ambitious ventures.
Impact On The Hosting Industry
This is part of a larger trend by larger investors acquiring popular hosting companies in the past. CVC also has positions in other popular larger hosting brands. CVC will become a larger player in the domain and hosting space with the acquisition of Namecheap.For smaller hosting providers, this may mean instigated competition. Companies supported by CVC may offer cheaper prices, and better service. This may make it more difficult for smaller companies to keep pace and could result in them either not competing or not competing to a point that you and I notice (in the services we need).
What This Means For You
If you run a website or plan to run one, this is good. It hopefully means Namecheap could offer improved service, faster response to support inquiries, and lower costs.Yet, don't forget to still price shop. Companies such as GoDaddy or SiteGround may still have options that better suit your need.
Conclusion
In summary, a CVC acquiring Namecheap is a significant development in the hosting space. More competition hopefully leads to improved services and pricing for us the consumers.What is your take on this acquisition? Do you think that Namecheap might be able to become better as a Company or evolve too much? Regardless, if hosting and domains mean anything to you, monitoring the situation would be worthwhile.