"Both parties are confident that this acquisition will generate benefits for our customers and partners," said Jim Collins, the CEO of Affinity Internet. "Hostway brings research and development power to build and deploy compelling and differentiated services, while Affinity has been guiding small businesses to web success with cutting edge services for over 10 years. By combining our exceptional, proprietary solutions we are able to provide an offering unlike anything currently in the market."

The combined company will offer a broad range of services, including domain name registration, shared web hosting, managed dedicated hosting, colocation, e-commerce hosting, SaaS application Hosting, web design and marketing, and online advertising solutions.

Markets served by the "new" Hostway will include the USA, Canada, United Kingdom, Germany, the Netherlands, Belgium, France, Romania, Australia, South Korea and India.