Ref. No - BFS938454

LocationSouth Africa, Western Cape

Ref. No - BFS938454

Sector - Services

Asking Price
R600,000
Monthly Profit
R29,740
Asset Value
R 0
Stock Value
R 0
Yearly Net Profit
R 356,881

Summary

An established web-hosting client portfolio with more than eight years of operating history is available for acquisition. The book is predominantly monthly debit-order based, supported by additional annual-paying clients, established billing and support processes, and low dedicated staffing requirements. The opportunity is well suited to an existing hosting, IT, web-development or digital-services provider looking to add recurring revenue, customers and cross-selling potential.

Give me more information

Fully describe the business's activities?

The opportunity comprises an established portfolio of South African SME clients receiving recurring web-hosting and related digital services. Core services include website hosting, email hosting, domain administration, technical support and associated hosting services. The portfolio has been built over more than eight years and is being divested as a non-core asset.

The current debit-order book comprises 337 active service subscriptions across 321 client names, supplemented by 79 once-off / cash hosting payments from 67 clients during the twelve months to June 2026.

A purchaser may also have the option to acquire selected associated digital marketing assets as a separate add-on, including an established brand, website and agreed operating assets and resources, for R174,000 excluding VAT, subject to the final transaction structure.

How does the business operate on a daily basis?

The hosting book is administered by an internal support team handling recurring billing, failed-payment follow-up, hosting renewals, account setup, technical support and customer queries. Hosting services are monitored continuously, with domain, email and website-related requirements managed as they arise. Website work and hosting support are handled by technical resources, while administration and collections support recurring revenue management. The operating model is established, process-driven and capable of being transitioned to an experienced hosting or digital-services buyer.

What Advertising/Marketing is carried out?

Marketing has mainly been through existing client relationships, internal referrals, bundled offerings, direct upselling, website presence and word-of-mouth.

What competition exists?

Competition comes from other South African hosting providers, web developers, digital agencies and IT service businesses offering similar recurring services.

How could the profitability of the business be improved?

Profitability may improve through infrastructure consolidation, lower hosting costs, automated billing and support, improved collections, pricing discipline, and cross-selling additional digital services to the acquired client base.

Give a breakdown of staff/ functions/ length of service?

Administration / Client Coordination — client communication, hosting renewals, blocks and terminations, and hosting renewal reconciliations.
Technical Hosting / Web Support — hosting setup, technical support, service monitoring, website development and maintenance, platform billing reconciliation and general hosting support.
Management Oversight — management support, escalations, staff supervision, reporting and review of hosting-related costs and performance.
Collections Support — failed debit orders, reruns, collections follow-up and maintenance of hosting collection records.

Do any have management potential?

The key technical resource already performs a coordinating and operational management role across hosting and website services and could provide continuity to an acquiring business.

How involved is the Owner in running the business?

Day-to-day operations are handled by the existing internal team, with management oversight within the wider business. The Hosting Book does not require direct owner involvement in routine service delivery.

When does the current lease end?

Not applicable. No premises or lease form part of the transaction, as the Hosting Book is being sold as an asset/client-book acquisition.

What are the trading hours?

The Hosting Book is not dependent on fixed trading hours. The seller’s normal office hours are Monday to Thursday 08:30–17:00 and Friday 08:30–15:00.

What are the main assets of the business?

The principal asset is the recurring Hosting Book, comprising the associated customer relationships, hosting and related service records and relevant transfer information. An associated digital marketing brand, website and agreed operating assets may also be available as a separate optional add-on for R174,000 excluding VAT.

Strengths?

• Established recurring web-hosting client base built over more than eight years.
• Predominantly recurring debit-order revenue, supplemented by once-off / cash-paying hosting clients.
• Established customer relationships across hosting, email and domain-related services.
• Established billing, collections, renewal and customer-support processes.
• Low dedicated staffing requirement.
• Day-to-day operations do not depend on direct owner involvement.
• Experienced technical resource may be available for transfer or transition support.
• Attractive bolt-on for an established hosting, web-development, digital or IT services provider.
• Opportunity for integration into an existing hosting platform and support infrastructure.
• Associated digital marketing brand, website and selected operating assets may provide additional strategic value

Weaknesses?

• The Hosting Book is currently supported by shared internal resources rather than operating as a fully standalone business.
• Successful transfer will require an orderly migration of customer, billing and hosting arrangements into the buyer’s operating environment.

Opportunities?

• Cross-selling additional hosting, website, digital marketing, maintenance and related services into the acquired client base.
• Potential cost efficiencies for an established hosting provider able to absorb infrastructure, billing and support into existing operations.
• Opportunity to improve margins through pricing discipline, collections optimisation and greater automation.

Threats?

• Client attrition or non-renewal following transfer could reduce recurring revenue.
• Migration, billing or customer-communication issues could disrupt service continuity if not carefully managed.
• Competitive pricing and low-cost hosting alternatives may place pressure on margins and customer retention.

What is the reason for the sale?

The seller is restructuring to focus resources on its core business activities. The Hosting Book is an established but non-core asset, creating an opportunity for a specialist hosting or digital-services buyer to take it forward. Selected associated digital marketing assets may also be available as a separate optional add-on.
Location

Contact | Enquire

Frank

Frank Schrempel

LocationSouth Africa, Gauteng

Preferred method of contact

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