Montagu Private Equity ("Montagu"), one of Europe's leading private equity companies, has reached an agreement to acquire Host Europe Group ("HEG") in partnership with its management team from Oakley Capital for a consideration of £222 million. HEG is a leading provider of hosting and domain services to small and medium enterprises in the UK and Germany.

Founded in 1997, HEG offers its 730,000 customers domain registration, mass and customised hosting and has an emerging software-as-a-service offering. It is a leading player in all of its segments, with specific strength in the growing cloud computing and virtualised server markets in the UK and Germany. HEG is comprised of two businesses, Webfusion and Host Europe GmbH.

With support from Montagu, management plans to integrate the two businesses, both of which have excellent growth prospects, creating a platform to address the significant opportunities which its markets provide. 

Thomas Vollrath, CEO of HEG, commented:
"Host Europe Group has grown to be one of the leading hosting and domain registration businesses in both the UK and Germany. In Montagu, we have found an experienced investor whose investment style, geographical reach and expertise is a great fit for our business and its strategy. With their support, I am confident that our business will continue to grow and prosper well into the future."

Wiet Stokhuyzen, Director, Montagu Private Equity, commented:
"HEG is a well-managed, high quality business with significant development potential - a great example of the type of business Montagu traditionally invests in and an excellent addition to the Montagu portfolio. We look forward to working with HEG's talented management team and supporting the business in realising its potential going forward."

Press Release

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