Data center provider BlueSquare Data announced an agreement to sell its hosting business to UK hosting company Namesco - a subsidiary of Dada Group.

"One of the key reasons for selecting Namesco was its interest in retaining and increasing the presence of our hosting brands within the BlueSquare Data Maidenhead campus," the seller company's group technical director Matthew Munson said in a statement. "It's important for us to ensure that any decision strategically enhances BlueSquare Data's position in the market."

BlueSquare's post-sale plan is to focus investment on development of its colocation data centers in Maidenhead and Milton Keynes. The company said its existing colocation customers would not be affected by the acquisition and pledged "comprehensive management of the transition" for its hosting customers.

Dada Group Chairman Claudio Corbetta said the acquisition of PoundHost (BlueSquare's hosting business) would allow the buyer complete its offerings in the "high-end digital service sector in the UK."

"Thanks to its technological expertise in the dedicated and virtual servers segment, we can strengthen our positioning in the professional services for online presence and advertising in a market in which Internet advertising has already overtaken television," he said.