amuck-landowner

EIG acquires Arvixe, LLC Assets

Francisco

Company Lube
Verified Provider
I wondering if EIG will pick up any VPS brands?

So far it seems to be mostly shared.
 

MannDude

Just a dude
vpsBoard Founder
Moderator
Regardless if you think EIG is the devil or not, this is the nature of the industry. They are probably the largest holder of the shared hosting market share.

Companies under EIG

Most of those companies are not ma-and-pa shops or ran by a few teens with time after school, they're big. I worked for Arvixe years ago and at the time they had about 3X,XXX customers and a few dozen full time staff... give or take. That's nothing to sneeze at. A very talented work force and like most older companies, are ran by people with great skill. I know Arvand and his brother did a lot of coding/developing work believe as well.

My main issue is how these are never publicly announced. I'd imagine when they buy you out they request silence on your part about the acquisition. This was only found out as someone was reading their quarterly finance report and noted the acquisition.

Love em' or hate em', EIG isn't going anywhere. They became a publicly traded company back in 2013 ( http://finance.yahoo.com/echarts?s=EIGI+Interactive#%7B%22range%22%3A%22max%22%2C%22scale%22%3A%22linear%22%7D ) and from the people I know who work or have worked for them under one brand or another, they don't seem like a bad place to work. (Real employee status, not this 1099 contract worker stuff that plagues the industry, health care and benefits, paid to volunteer in your local community on time off, etc)

They buy you out by giving you more money than your company is probably worth because they can and know that's the only way to get people to let go of things they've worked on for years to build. Every man has his price, the list above is a collection of companies ran by people who found theirs.
 
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drmike

100% Tier-1 Gogent
Consolidation happens in this industry. Hell it's happening in ugly way in all traditional industries too as the economy sputters.

Since vast majority (if not all) of these acquisitions were of private companies, the money is elusive illusion and not going to be forthcoming on the biz recipe.

Arvixe was a company I fondly joked that half of the productive folks in the bargain sector worked at, at some point.

Arvixe by our terms here wasn't ever price wise a discount brand.   Even cursory look at their lowest shared hosting plan with all the unlimited 'garbagio' smacks you today at $96.

Like every other shared-hosting focused brand it is all about those big fat pay ahead annuals.  Every customer through the door = $100 plus whatever you can upsell them on (domains, SSL, etc.)

The stealth shut your mouth deals are simple.  They are there to prevent mass brand defection.  People get irked, but are all ADD.  Attention span of caring is three billing periods and if things don't catch on fire or go down as often as ColoCrossing brand then 85%+/- keep their butts in the same chairs.   Cause folks are lazy.

EIG is big venture / fund money.   More money than sense.

The buyouts, great for the ownership getting out with their golden parachute.  Unsure how it proves for the working folks that keep these companies running.

All said, non 1099 real employee status, vacation time you actually can use cause they have other staff while you relax, 401(k), etc.  these are things blue collar fought for and received many many decades ago.  Tech continues to be blah and an outsourced sweatshop mind thriller.   Slavery was outlawed, but involuntary self-enslavement is contractually just fine by law and obviously in practice.

More consolidation is going to happen and I guarantee we'll see brands folding outright.  Overdue as really, I don't see any of these companies growing tech necessity and creating a reason for people to have multiple hosting packages they pay for at any cost.
 

XFS_Duke

XFuse Solutions, LLC
Verified Provider
I worked for Arvixe for a while a few years ago as well. We have well over 30k customers and when I had access to billing, they made some money. I know they used, from what I was told, their own custom billing system named rosewill and it worked great. They were supposed to build it into a stand-alone system that they could lease out. Guess that never panned out.

Arvixe was great. Hope they don't just slack right away. Too bad for all the 1099'rs that will be looking for future work as from my understanding, EIG doesn't use remote techs... Maybe someone else can confirm or deny that, but when I applied and got my interview with HostGator I would of had to move to Houston.
 

Francisco

Company Lube
Verified Provider
Looks to be confirmed:

Hi WHT,

Arvixe has joined EIG. Our goal has always been to provide quality service/support and we will continue to do so as part of the EIG brand as we have done the past 11 years. Our management team is working with EIG to make sure integration is as seamless as possible. Thank you for understanding.

Regards.
http://www.webhostingtalk.com/showpost.php?p=9282874&postcount=56

Francisco
 

bullfrog3459

New Member
Oh you know...EIGI has posted adjusted income from Q1 to Q3 at a cool $472 Million. Projected to have $165M for Q4 for a nice total of $637M for the year. Not bad....only a small bank roll.
 

wlanboy

Content Contributer
Jup merges are starting all over the tech companies.

Look at Silicon Valley - the landlords now require new companies to pay the rent for the whole year up-front.

Because they don't know if these companies can pay the rents on the long term.

Maybe some old big corps don't have your personal fan status but they do something right - they do have the money to buy companies the owners don't have any faith in.
 

XFS_Duke

XFuse Solutions, LLC
Verified Provider
It's funny how the Arvixe QA staff posts on WHT and says that they're working with EIG. Unfortunately the world knows what will happen. Arvixe's main staff will be kept on for a while and all other staff will be removed. Just like HostGator and the rest of their buyout companies. It's sad, the long list of companies that were bought out by them had pretty good track records. Only to let the money get in the way. I personally, don't care about how much one company can offer me for my company, my customers and reputation come first. It saddens me. I do remember Arvand saying he wouldn't sell his company to anyone. Heh... Look at it now, first the WebEasy stuff and now this.
 

trewq

Active Member
Verified Provider
I do remember Arvand saying he wouldn't sell his company to anyone. Heh... Look at it now, first the WebEasy stuff and now this.
Everyone has their price. If someone is willing to payout your pride then he'll, why wouldn't you?
 

zafouhar

Member
Well i saw this coming at least since April/May 2014, its interesting though as there isn't yet any public announcement regarding this acquisition.
 

drmike

100% Tier-1 Gogent
Waiting for the inflow of all those Arvixe workers who now are looking at pink slips.

Certain to see old, friendly faces visiting us here and elsewhere in coming weeks.

As for the combo dealing, $70+ million.  Hard to do a teardown on what was sold here and values.

Arvixe should have been $5-10 million - but hard to say without better info.  Sad if the owner said he'd never sell and obviously just did.

I'm f'n blah about Arvixe and their "24X7 U.S. PHONE SUPPORT" ... Says that at the very top of their homepage.

US folks allegedly on phones, and all those Indians are doing what?  Tickets?  Seems damn deceptive.   

Is this fake US support common among EIG companies?  Others aware of the practice in other EIG owned companies?
 

drmike

100% Tier-1 Gogent
Word has it that Arvixe seemed to still be renting servers.  Meaning their per server starting monthly nut to cover was much higher.  Softlayer was/is one of the providers.

EIG is supposedly migrating Arvixe to colocated and owned servers.
 

XFS_Duke

XFuse Solutions, LLC
Verified Provider
Waiting for the inflow of all those Arvixe workers who now are looking at pink slips.

Certain to see old, friendly faces visiting us here and elsewhere in coming weeks.

As for the combo dealing, $70+ million.  Hard to do a teardown on what was sold here and values.

Arvixe should have been $5-10 million - but hard to say without better info.  Sad if the owner said he'd never sell and obviously just did.

I'm f'n blah about Arvixe and their "24X7 U.S. PHONE SUPPORT" ... Says that at the very top of their homepage.

US folks allegedly on phones, and all those Indians are doing what?  Tickets?  Seems damn deceptive.   

Is this fake US support common among EIG companies?  Others aware of the practice in other EIG owned companies?
To be honest, mostly all of the Phone reps are from the US originally. There was like 1 or 2 Indians that live in the US that worked phones. Most of their foreign workers do Chat and Tickets. I personally did all when I was there... Phone, chat and tickets. I also did SSL installs and VPS/Dedicated Server setups.
 

drmike

100% Tier-1 Gogent
Yeah 24x7 phone support is to give idea that support is USA based.  It's not about the phones.

They don't elsewhere or nearly as prominently proclaim:

"24x7 ticket support (and other forms) provided by non USA based".

I mean it's partially telling the truth, but bet your bottom dollar, it's wrote that way to be deceptive.

I remain AMAZED at the adoption of foreign workers in this industry and how "embarrassed" everyone is of such.  

I mean I have yet to see anyone say:

"We are able to offer low prices to you, our customer, because we leverage the economy of employing workers in poverty stricken, low-per-capita earning nations.  By not paying USA workers (or others major industrialized nations) we can slash our prices"

Companies engaging in such should just be embarrassed of themselves.  I am sure their parents decades ago wouldn't have appreciated such marketing / sales distortions and certainly wouldn't have smiled about the whole labor force gimmick.
 
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