Business Name: Sign-up to view listing at https://fih.com/listing/8016492
Business Website: Sign-up to view listing at https://fih.com/listing/8016492
Business Start Date: May, 2010
Business Location: London, UK
Business Valuation: 10,300,000 GBP
Percentage Being Sold: 100%
Employee Number (Inc. Owners): 8
Business Model: B2B SaaS, IaaS, White Label/Reselling
Industry: Web/VPS/Wordpress Hosting Services
Niche: Financial Hosting, Forex, Algorithmic Trading
Sales (TTM): £5,831,475 GBP
Net Profit (TTM SDE): £4,549,473 GBP
Percentage of Revenue Recurring: 100%
Business Multiple (TTM Revenue): 1.77x 
Business Multiple (TTM SDE): 2.26x
Customer Locations (Active Paying Clients): 89.59% from western countries (35.55% from USA is largest group with UK, Canada, and Australia being the next 3 biggest countries for paying clients)
Social Media Followers: ~30,000+
Paying Clients (TTM): 5,533
Tag Line: 15 y/o Algorithmic Trading Hosting IaaS Provider Priced to Sell Quickly at 1.77x ARR + 2.26x Profit!

Business Overview

The business is a premier web hosting provider specializing in financial trading hosting solutions. Established in May 2010 and headquartered in London, UK, the company has grown into a leader in the niche of specialized forex and financial trading hosting. The business offers ultra-low latency, high-performance virtual private servers (VPS) designed to meet the demands of financial traders and institutions.

Investment Highlights

1. Unique Niche & Competitive Advantage

• The business pioneered the specialized "Forex VPS" hosting niche, offering solutions uniquely tailored to algorithmic and high-frequency trading.

• Proprietary technologies such as [REDACTED] and [REDACTED] optimize trading speed, stability, and security.

• Unlike general hosting providers, the business focuses exclusively on the financial sector, reducing competition.

• Turnkey business with existing staff, infrastructure, and customer base.

2. Strong Financial Performance

• Consistently high profitability: The business operates with a high margin, achieving £4.5M in net profit on £5.8M in revenue (TTM).

• Predictable recurring revenue: 100% subscription-based model with prepaid billing ensures steady cash flow.

• Customer retention: Average client lifetime of 631 days, indicating strong customer loyalty.

3. High-Growth Market

• The global forex market is projected to grow from $1.18T in 2023 to $1.79T by 2032 at a CAGR of 5.37%.

• Algorithmic trading dominates global financial markets, representing:

  • 92% of forex market transactions

  • 60-73% of U.S. equity trades

  • 60% of European trading activity

• The demand for specialized financial hosting solutions is expected to increase with the growth of AI-driven automated trading.

4. Scalable & Efficient Operations

• Fully remote, lean operation with only 8 employees managing a high-revenue business.

• Low customer acquisition costs due to organic SEO and social media marketing.

• Clients acquired primarily through a proprietary agent network and content-driven strategies.

• No reliance on paid ads – focus on long-tail niche searches and referral traffic.

Business Overview

History & Growth

The business was founded in 2010 by a former CTO of a U.S.-based hosting company who saw an opportunity to create a specialized hosting solution for financial traders. Through innovation and strategic positioning, the company has grown into a recognized leader in its niche, with a global client base of 19,000 traders.

Service Offerings

[REDACTED] – High-Performance Hosting for Algorithmic Trading

[REDACTED] is a cutting-edge Velocity Processing System (VPS) designed for professional algorithmic traders who require ultra-low latency execution for their strategies.

Key Features:

• The business [REDACTED]: 

  • Provides super-fast Direct Market Access (DMA) to major financial exchanges.

  • Optimized for both fiat and cryptocurrency trading, ensuring cost efficiency and seamless execution.
     

• The business [REDACTED]:

  • Ensures uninterrupted operation of trading software by preventing downtime due to crashes, misconfigurations, or unexpected shutdowns.

  • Real-time alerts and automatic system restarts in case of disruptions.

  • Logs critical events such as:

    • Server start and reboot times.

    • Trading software uptime, interruptions, and failures.
       

• Technical Specifications:

  • Low-latency VPS instances optimized for high-frequency trading.

  • Dedicated resources to prevent performance fluctuations.

  • Pre-installed and optimized trading platforms (e.g., MetaTrader, cTrader).

  • Geographically optimized servers near major financial exchanges for minimal latency.

Cloud Dedicated Servers – High-Availability Virtualized Infrastructure

The business provides enterprise-grade cloud dedicated servers designed for mission-critical applications, offering businesses high-performance, scalable cloud computing power.

Key Features:

• Enterprise-Grade High Availability Technology:

  • Automatic failover protection to prevent downtime due to hardware or software failures.

  • Real-time resource allocation for optimal workload balancing.
     

• Dedicated Resources & Scalability:

  • Fully dedicated compute, memory, and storage resources.

  • On-demand scalability to accommodate workload growth.
     

• Data Protection & Security:

  • Redundant storage with automated backup options.
     

  • Secure networking with private connectivity options.

• Use Cases & Industry Applications:

  • Enterprise hosting for business-critical applications and databases.

  • Real-time processing workloads requiring low-latency and high uptime.

  • Cloud-native applications with high scalability requirements.

Customer Base & Acquisition Strategy

Primary Customers: Algorithmic traders, financial institutions, forex brokers.

Average Revenue Per User (ARPU): £1,055 per year (~£130/month).

Customer Acquisition Channels:

• Greyhat SEO – Long-tail niche search strategies via private blog networks (PBNs).

• Affiliate/Agent Network – Online partners refer new customers.

• No PPC or paid ads – Paid ad campaigns have been tested but proved ineffective.

Customer Retention & Churn:

• Subscription-based model ensures predictable revenue.

• Strict cancellation policy – Clients must submit a 30-day notice.

• No free trials – 100% of customers are paying users.

• Gross Retention (%): 66.9%

• Net Retention (%): 68.8%

• Logo Retention (%): 66.4% 

• Average Revenue per User ($K in USD): 2.0

Unique Selling Proposition:

• [REDACTED] – Low-latency trading execution.

• [REDACTED] – Automated failure recovery system.

Technology & Infrastructure

• Self-hosted proprietary solutions with high availability infrastructure.

• Secure and compliant with PCI-DSS standards, ensuring safe transactions.

• Multiple global data centers ensuring optimal performance for traders worldwide.

• Custom-built automation tools reducing human intervention requirements.

Billing Process

The business operates a prepaid service model with a structured monthly billing cycle, ensuring predictable revenue and seamless service for customers.

• Recurring Billing Agreements: Customers enter an automatic billing cycle upon purchase, with payments collected at the start of each service period.

• No Overdue Invoices: Services are automatically terminated if a payment fails, ensuring zero outstanding balances.

• 30-Day Cancellation Notice: Customers must submit requests via the online user portal, providing billing predictability and reducing disputes.

Organizational Structure 

The business operates with a streamlined team:

• CEO/Founder: Oversees strategy and business operations.

• Support Manager: Manages technical support and service quality.

• Support Agents (6 total): Provides 24/7 support in rotating shifts.

Outsourced Services:

• Data Centers: Hardware procurement, installation, and maintenance.

• Marketing & Advertising: Managed by external agencies.

• Software Development & Design: Custom software managed by freelancers.

• Financial & Legal Assistance: Compliance, bookkeeping, and regulatory services

Workload & Owner Involvement:

The current owner works part-time (~20 hours/week).

The business can be fully automated with minor improvements in customer support efficiency.

Legal and Compliance

Ownership Structure: 100% owned by the owner with no external shareholders or financial obligations.

No Debt or Loans: The business operates debt-free with no financial covenants, loan agreements, or credit facilities.

Regulatory Compliance:

• Fully compliant with GDPR and PCI DSS v4 standards.

• No history of legal disputes, anti-trust issues, or data protection violations.

Intellectual Property:

• Proprietary trademarks and service marks used in branding.

• Exclusive ownership of the business [REDACTED] and [REDACTED] technologies.

Growth Opportunities

1. Expansion into AI-driven Trading Hosting – With trading automation increasing, the integration of AI-based strategies will boost demand for high-performance hosting solutions.

2. Strategic Partnerships with Forex Brokers & Institutions – Creating white-label or bundled solutions with brokers can drive revenue growth.

3. Mobile App Development – A dedicated mobile platform for hosting management could enhance user experience and retention.

4. Targeted Marketing Expansion – Leveraging high-ROI advertising strategies and influencer partnerships in the forex community.

Reason for Sale

The founder has successfully operated the business for 15 years and is seeking to transition to new challenges. The business is positioned for continued success and would benefit from new leadership with expertise in scaling marketing efforts and strategic partnerships.

Deal Structure & Transition Support

• Ownership for Sale: 100%

• Valuation: 10,300,000 GBP

• Transition Support: Seller willing to stay on for 3-6 months to ensure a smooth transition.

Ideal Buyer Profile

• Strategic Hosting Provider – A hosting company looking to expand into financial trading solutions.

• Financial Technology Firm – A fintech company seeking to integrate premium hosting services.

• Private Equity Investor – An investor looking for a high-margin, cash-flow-positive business with strong retention rates.

 

About the Agent 

FIH.com is a Manhattan-based M&A advisory firm specializing in the sale of remotely-run successful digital companies (around the world) from $1M-100M in revenue, including apps, marketplaces, freemium + enterprise SaaS, ecommerce, affiliate/advertising groups, and more! We are proud to work with the very best entrepreneurs and investors, so if that’s you and you are in the market to acquire or sell a relevant business, then we encourage you to reach out for a complimentary consultation.