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Pipex snaps up another Web host outfit

Pipex has shelled out £5,9m to acquire Web host outfit Donhost Ltd as it looks to beef up its hosting operation. As part of the deal Pipex will be adding 92,000 customers and 120,000 domain names to its business - bringing the total number of domain name registrations for Pipex to more than one million. None of the eight jobs at the Doncaster-based Internet business are under threat as part of the acquisition, with Donhost's staff continuing to run and look after punters. Boss Daniel Conlon will also remain with Pipex. Unaudited accounts for Donhost during 2004 reveal that that company generated revenue of £1.3m last year with pre-tax profits of £707,000. Last year Pipex acquired another Web hosting operation - Host Europe - for £31.2m and also snapped up broadband outfit Nildram. Speaking today Pipex chairman Peter Dubens said: "Having completed the integration of Host Europe and Nildram over the last eight months, we are now well placed to further strengthen the hosting part of our portfolio with the acquisition of Donhost." Whereas this may be good for the balance sheet at Pipex, it doesn't bode well for ex-Donhost customers - many of whom hastily moved to Donhost from Webfusion when it was bought by Pipex - and if Pipex's past takeover performance is anything to go by, then the Doncaster data centre could soon be on its way to shutting down - causing a wave of customer upset with guaranteed downtime.

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