EIG Buys Arvixe - One of our Top Rated Hosts

By Jonathan Griffin. Editor, SEO Consultant, & Developer.

· 4 min read

On November 4th, 2014 Endurance International Group (EIG) released its 2014 Third Quarter Results which contained a reference to the purchase of Arvixe on the 31st October 2014.

The third quarter results said:

During the quarter, the company acquired Webzai, Ltd. and the assets of BuyDomains. In addition, on October 31, 2014, the company acquired the assets of Arvixe, LLC. The total consideration for these acquisitions is expected to be approximately $77 million.

Arvixe was owned by Arvand Sabetian and Avanquest North America Inc, and the purchase price is likely to be significant. We have confirmation that Avanquest has also sold its 50 percent share in the company via Reuters.

The news of the acquisition first broke on the Webhostingtalk forums on the 4th November, which caused a buzz within the community due to the high regard which Arvixe was held, and the low regard the Webhostingtalk community gives companies purchased by EIG. 

To some extent they have a point, with one of the most shining examples being Hostgator, when it was acquired by EIG back in 2012.  Once being held and praised by everyone, the service and support now have a less than stellar reputation under EIG.  A contrasting view, being our own, is of Hostnine and A Small Orange which were purchased by EIG last year but we have not seen any real difference in performance or support, and they remain among our favorite hosts.

Of course, it is too early to say how EIG intends to manage Arvixe going forward, but it is one we will be watching out for.  Arvixe seems to have rented or co-located its servers with SoftLayer, the same data center Partner that SiteGround uses, but if history is repeated the servers may soon get located within EIG’s own data centers.

Some Arvixe Users have already received notification that their servers are being moved, and unconfirmed rumors seem to suggest they are moving all their servers to the EIG data center, meaning they may well be managed by the same team that manages their other cPanel hosting brands such as BluehostJust HostHostmonster, and Hostgator. This means they will become just another brand of EIG, and we cannot see how they will be able to maintain what makes them unique, but this is just speculation at this point based on experience with EIG brand purchases.

“I Host With Arvixe - What Should I Do Now EIG has Bought it?”

There is no need to panic.  If they do this right, as they did with A Small Orange and Hostnine you will have no problems.  However, as a precaution, you should definitely take backups of all your data and keep them off the server (i.e. download the cPanel backups to your computer) and do this regularly. 

It is not uncommon with mass server migrations to experience some downtime, but it is best to be prepared should something untoward happen.  When migrating so many accounts, it is possible the server could time out during a transfer or something similar which could affect your data, which even if the chances of this happen are minuscule it is something we would recommend you mitigate against.  We are sure, however, hat Arvixe will be doing everything in their power to ensure that this doesn’t happen.

There are of course people who will say move away from Arvixe now, and those that say this is not necessary.  We found one comment that reflects our opinion on the matter:

I’ll create a third camp for you. Open minded that are willing to watch and track what happens. I haven’t seen A Small Orange fall off a cliff since EIG acquired them. They still seem to operate independently, and service doesn’t seem to have tanked. So I am open to the idea that they don’t operate every brand identically under the EIG umbrella and are taking a more nuanced approach. They could get better at cutting costs/increasing profits without killing the quality/brand. It might happen, it might not. But I can’t condemn something before it happens.

Editor’s Note: We have provided an in-depth update as to what has been happening at Arvixe since. Our post is titled “Reports of Server Issues, Slow Support, and Unhappy Customers at Arvixe after Server Migrations” which gives you some idea.