# Semoweb Sold / Acquired?!?!



## drmike (Jun 27, 2013)

Congratulations to Dustin Cisneros over at *semoweb*.  It appears that Dustin has sold *semoweb*.

*whois semoweb.com:*

 

   Domain Name: SEMOWEB.COM

      Created on: 26-Apr-08

      Expires on: 26-Apr-14

      Last Updated on: 24-Jun-13

 

   Registrant:

   Eric Sengbusch

   --------------------

   Cypress, TX 77429

   us

 

 

 

Eric's name should be familiar to some folks on vpsBoard, he's with Root Level Technology.

 

Root Level Technology has made several acquisitions you might be familiar with:

Host & Store

ServerSavior

Dedi France

URPad.net

K-DISKNETWORKS

vmport.eu

 

and now: *semoweb*

 

Congrats to Eric, Root Level Technology and Dustin!


----------



## Francisco (Jun 27, 2013)

Busy Busy!

It sounds like the guy has a lot of cash in hand.

Francisco


----------



## rds100 (Jun 27, 2013)

So is this the new EGI?


----------



## drmike (Jun 27, 2013)

I don't know what Root Level Technology's plans are.  They list the acquisitions on their website and seem to operate the companies as individual units or "products" as they've labeled them.  Obviously, there is integration to some extent on the backend, like one tech / administrative team.



> Root Level Technology LLC officially launched in January of 2013 as a spin-off from a successful software development company that developed applications for large government entities such as the Federal Reserve.
> 
> source: http://www.rootleveltech.com/about.html


----------



## Francisco (Jun 27, 2013)

rds100 said:


> So is this the new EGI?


EIG* no?

Francisco


----------



## HalfEatenPie (Jun 27, 2013)

Yall are both wrong.  It's GDI.  The new Global Defense Initiative (shell company is Root Level Technology) is preparing for a NOD Attack by bulking up their online defenses (e.g. by having tons and tons of servers), especially since NOD has Cabal.  

Ok I'm done with this joke.  Back on topic!


----------



## MannDude (Jun 27, 2013)

Francisco said:


> EIG* no?
> 
> 
> Francisco


I get them mixed up all the time too.

I heard murmurs of this the other day as well. I can't find any official announcement but I would assume Semoweb customers have been told unless perhaps the deal isn't finalized yet? Don't know. (Kind of like URPad couldn't comment that it was sold until everything was finalized despite the thread on LET stating we had)

The folks over at Root Level Tech seem like good people with the resources to properly maintain and grow brands so I suspect everything will turn out just fine.


----------



## dominicl (Jun 27, 2013)

MannDude said:


> I get them mixed up all the time too.
> 
> I heard murmurs of this the other day as well. I can't find any official announcement but I would assume Semoweb customers have been told unless perhaps the deal isn't finalized yet? Don't know. (Kind of like URPad couldn't comment that it was sold until everything was finalized despite the thread on LET stating we had)
> 
> The folks over at Root Level Tech seem like good people with the resources to properly maintain and grow brands so I suspect everything will turn out just fine.


I'm a SemoWeb customer, and haven't received anything about this.


----------



## Reece-DM (Jun 27, 2013)

Root Level Technology seems to be taking over quite a few host's lately.

Lets hope something don't go wrong down the road.


----------



## GVH-Jon (Jun 27, 2013)

Let's pray that RLT takes over EIG in the upcoming years.


----------



## maounique (Jun 27, 2013)

Anyone knows any details about the deals ? Like if there was some cash offered or just rescued ?


----------



## drmike (Jun 27, 2013)

Mao said:


> Anyone knows any details about the deals ?


 

Nope.

I don't understand why those being acquired are in stealth mode and snapped on the lips.   Being bought was always a cause for celebration and I always believed in informing your customers of the deal and what it means to them....


----------



## SeriesN (Jun 27, 2013)

buffalooed said:


> Nope.
> 
> I don't understand why those being acquired are in stealth mode and snapped on the lips.   Being bought was always a cause for celebration and I always believed in informing your customers of the deal and what it means to them....


Could be that they are under some kind of NDA or getting used to with everything and preparing massive announcements? It takes time


----------



## D. Strout (Jun 27, 2013)

Yup, you can see Semoweb listed on RLT's website, in the scrolling box at the bottom, right after "Reliabox" and before "Host&Store". My only experience with RLT is through URPad, but the support on URPad has been good since RLT bought them out. Still, whether reasonably or not, I'm always suspicious of a company that's acquiring a whole bunch of other companies without directly providing tangible services.


----------



## MannDude (Jun 27, 2013)

D. Strout said:


> Yup, you can see Semoweb listed on RLT's website, in the scrolling box at the bottom, right after "Reliabox" and before "Host&Store". My only experience with RLT is through URPad, but the support on URPad has been good since RLT bought them out. Still, whether reasonably or not, I'm always suspicious of a company that's acquiring a whole bunch of other companies without directly providing tangible services.


Well thats new.

I created most the content for the site and put the other brands in the footer, but not Semoweb. So I'd say that settles it. I messaged a guy who works at RLT on Skype earlier and asked about it but didn't get a response and have ticketed Semoweb about 20 minutes ago, but wasn't aware it was already on RLT's site.


----------



## MannDude (Jun 27, 2013)

Well that settles that.


----------



## MannDude (Jul 2, 2013)

http://lowendtalk.com/discussion/11549/semoweb-acquired-by-root-level-technology Looks like it made it to LET finally.


----------



## jcaleb (Jul 2, 2013)

before it is FTN acquiring hosting companies. and now they are bought too? or is it just the urpad brand?


----------



## jcaleb (Jul 2, 2013)

sometimes you can smell acquisition few months away. when a company suddenly drops prices too much. seems strategy to increase userbase before selling. this how i see what was happening to urpad and semoweb in past few months


----------



## peppr (Jul 3, 2013)

so who is next on line @jcaleb


----------



## jcaleb (Jul 3, 2013)

peppr said:


> so who is next on line @jcaleb


Check who is dropping prices around 50% all of a sudden. Maybe companies giving 1GB or 2GB in 20 dollars give or take, yearly plans.

I have 1 suspect....


----------



## jcaleb (Jul 3, 2013)

i am not expert in business and i am surprised when a profitable business is sold.  Like the company I work for.  It is 200 yrs old but recently bought by a 10 yr old company.


----------



## rds100 (Jul 3, 2013)

@jcaleb why are you surprised? The owners get some millions $$$ (or whatever the amount is), then retire and go to live on some carribean island.

Many companies / startup are created with the sole idea to be sold later.


----------



## concerto49 (Jul 3, 2013)

jcaleb said:


> Check who is dropping prices around 50% all of a sudden. Maybe companies giving 1GB or 2GB in 20 dollars give or take, yearly plans.
> 
> 
> I have 1 suspect....


But the one you are suspecting is owned by a way larger company that isn't likely to sell. That company also has many rumored shell companies.


----------



## jcaleb (Jul 3, 2013)

concerto49 said:


> But the one you are suspecting is owned by a way larger company that isn't likely to sell. That company also has many rumored shell companies.


my suspect is a smaller host... not very old


----------



## drmike (Jul 3, 2013)

jcaleb said:


> my suspect is a smaller host... not very old


Based on what Root Level is doing and pace they are doing it at, I am pretty certain they already have other low end companies they've bought and the ink on the contract is drying.

Expect another flurry of 2-3 companies under their umbrella in next 45 days.


----------



## jcaleb (Jul 3, 2013)

buffalooed said:


> Based on what Root Level is doing and pace they are doing it at, I am pretty certain they already have other low end companies they've bought and the ink on the contract is drying.


specially to those who have history of selling


----------



## DaringHost (Jul 5, 2013)

Here's the official release about the acquisition: http://rootleveltech.com/blog/?p=5


----------



## Francisco (Jul 5, 2013)

rds100 said:


> @jcaleb why are you surprised? The owners get some millions $$$ (or whatever the amount is), then retire and go to live on some carribean island.
> 
> Many companies / startup are created with the sole idea to be sold later.


When Rus Foster used to feast on the budget market there was *many* brands that built with the sole purpose of selling out to him. HazeNET and a whole ton of them that he bought were all like that. They got a little bit of cash from sales, pushed stupid cheap deals for a few months then sold to Rus and made a few grand for being a 'sales rep'.

Once Rus left the picture I figured urpad was going to try to fill the gap but I think @Chris Miller stopped himself.

Francisco


----------



## prometeus (Jul 6, 2013)

Francisco said:


> When Rus Foster used to feast on the budget market there was *many* brands that built with the sole purpose of selling out to him. HazeNET and a whole ton of them that he bought were all like that. They got a little bit of cash from sales, pushed stupid cheap deals for a few months then sold to Rus and made a few grand for being a 'sales rep'.


I don't know the US market enough but I don't see how new small companies with one or a few thousands of clients with a low ARPU can be bought for large amount of money.

What is the value of a client ?


----------



## XFS_Brad (Jul 9, 2013)

I have talked to the Former Owner of SemoWeb asking him What made him sell, and why. Unfortunately he is unable to tell me anything about the sale due to an NDA that was involved during the acquisition of Semoweb. I'm not sure if we will ever know anything about this, other than was has been made available on Root Level Technologies' Site.

I think it should known to the public. I also do have services with SemoWeb and I never received any notification that this was taking place or that it had been done. But, I figure as long as my services stay online and the customer service stays the same, I really don't care.


----------



## drmike (Jul 9, 2013)

XFS_Brad said:


> Unfortunately he is unable to tell me anything about the sale due to an NDA that was involved during the acquisition of Semoweb.


I've never heard of such heavy handed legalese being tolerated.  Sends signal to me that they are acquiring companies that are struggling to exist and that have/had minimal income.

The rest of the business world would have their lawyers jumping all over the legal stuff and making them stuff those sorts of mouth shut mandates.

I don't agree with Root's strategy to this point.   It seems to be silent about the acquisitions and just run them as-is with existing customers.   There doesn't seem to be any outreach, brand building, etc.   

Compare all that to their WHT ad looking to buy companies:



> 06-10-2013, 12:11 PM
> RBurns
> Aspiring Evangelist
> 
> ...


----------



## XFS_Brad (Jul 10, 2013)

buffalooed said:


> I don't agree with Root's strategy to this point.   It seems to be silent about the acquisitions and just run them as-is with existing customers.   There doesn't seem to be any outreach, brand building, etc.


I Agree, as it they are trying to be sort of 'stealthy' in "acquiring" Brands/Companies. I do not agree with no reaching out the customers to inform them of the sale, as I think customers should be one of the 1st to know. But I guess we will see how far they get.


----------



## rds100 (Jul 10, 2013)

If the old company (Semoweb whatever) doesn't caese to exist and the customers are still served by that company - then there is not much reason to announce the sale. After all some companies are publicly traded and shares can change hands every day - would you expect announcements for these too?

On the other hand if the old company is closed, customers migrated to a new company - yes, in this case the customers must know about it, preferrably in advance.


----------



## jcaleb (Jul 10, 2013)

telling customers will may make panic


----------



## Reece-DM (Jul 10, 2013)

I took at look at Rootlevel tech and Rburns on WHT.

He used to run CheetahHost.net which appears to of had shutdown/be sold who knows.

However since being a member on WHT he's posted many investment offers and also requested many over the years at the same time.

Odd bit is, Cheetahhost vanishes and straight after it looks like he's running ServerSavior -- Maybe someone got a huge sale? Or finally found that investment he wanted.

it is also noted there were similar sites to CheetahHost back then so it wouldn't surprise if they were much smaller operations he were involved in.

Any actuall link between the companies brought? Just curious = )


----------



## DaringHost (Jul 10, 2013)

Reece said:


> Any actual link between the companies brought? Just curious = )


If I understand correctly, this? : http://rootleveltech.com/products.html


----------



## Master Bo (Jul 11, 2013)

Read also this announcement:

http://www.webhostingtalk.com/showthread.php?t=1282326

Ihave contacted Randal (I use SemoWeb services, after all) and was assured nothing will be changed in the immediate future, and that every change will first be announced.

Anyway, I still feel kid of wary about this sell.


----------



## Jade (Jul 21, 2013)

Companies being sold left and right  -_-


----------



## MannDude (Jul 21, 2013)

Jade said:


> Companies being sold left and right  -_-


I'm sure there are more that have been sold / are in the process of being sold that we've yet to hear about


----------



## Jade (Jul 21, 2013)

MannDude said:


> I'm sure there are more that have been sold / are in the process of being sold that we've yet to hear about


That I'm sure of haha  :lol:


----------



## MannDude (Jul 21, 2013)

Jade said:


> That I'm sure of haha  :lol:


I'd like to think that we will hear about them too, when sold, but it's likely we won't.


----------



## ThePrimeHost (Jul 31, 2013)

Hostgator sold to EIG. Softlayer sold to IBM.  For the right amount of money just about everyone and organization will do the same. This is the nature of the business.


----------

