Americana Hostgator, web site internet hosting firm, buys DLoja Digital from Rio Grande do Sul and targets e-commerce in Brazil
- February 2, 2023
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The values of the transaction, through which Hostgator’s Latin American arm takes control of DLoja Virtual, were not disclosed.
A hostgatora global provider of website hosting and one of the brands of the American holding company Newfold Digitalannounces the acquisition of DLoja Virtuala company from Rio Grande do Sul that created an e-commerce platform focused on micro and small businesses.
The values of the transaction, by which Hostgator’s arm for Latin America takes control of DLoja Virtual, were not disclosed.
What does DLoja Virtual do?
Founded in 2010, in Porto Alegre, DLoja Virtual owns the Simplo 7 platform, whose promise is to launch, in a matter of minutes, a virtual store with more than 100 useful functionalities to do well in e-commerce, such as:
- payment and logistics gateways
- connection with the main Brazilian marketplaces
- native resources of marketing
- promotion in social media it’s from adverts
- optimization for seekers
Newfold’s ambition is to truly participate in Brazilian e-commerce, a market worth nearly US$50 billion by 2022, according to British consultancy Retail X.
Headquartered in Jacksonville, Florida, Newfold Digital appears in 2021 after the merger of Endurance International Group (EIG), a website hosting company whose embryo was BizLand, with competitor Web.com.
Newfold is controlled by the private equity fund Clearlake Capital Group, LP, headquartered in Santa Monica, California.
Until now, Newfold operated in Brazil only through Hostgator, a provider of structures for virtual stores purchased by EIG in 2012.
What are Hostgator plans
Hostgator had been working on tools to virtual stores small businesses like Optimized WP, a version of WordPress online content publisher dedicated to the reality of online retail.
Hostgator’s intention with the acquisition is to expand the offer of products and services, taking to the e-commerce market the experience of 15 years as an authority in website hosting, services and sales management.
In the offer of DLoja Virtual’s virtual stores, the company will also allow customers to register domains and have professional email accounts offered by Hostgator.
“Our customers are increasingly looking for e-commerce offerings, and DLoja Virtual will provide us with a way to combine Hostgator’s business generating capabilities with a new e-commerce solution that already has the product and features to serve customers in the Brazil,” said Sharon Rowlands, CEO of Newfold Digital.
The decision to bet on the country came with the maturity of this market in Brazil and Latin America.
To shorten the path, the company evaluated several platforms and found in DLoja Virtual the ideal partner to be incorporated.
“We also noticed that the success rate of tenants using the DLoja Virtual platform was much higher than the market averages”, said Robledo Ribeiro, head of Hostgator Brasil.
“While in the majority of the segment only 10% of customers register monthly sales in their stores, in their customers, more than 50% sell products on a recurring basis.”