Canada’s government has announced a new contract for Canadian web hosting firm BlueHost to provide services for the country’s 1,500,000 residents.
The new contract, announced Thursday, comes after BlueHost was shuttered in March after being unable to find a buyer for the remaining 30 percent of its portfolio of assets.
BlueHost will remain part of BlueHost Canada, which has been operating under a new name since January.
The company will remain available for new customers to use as long as the customer is Canadian.
The move by the government follows a new round of bidding by private companies and Canadian government agencies.
Bluehost was purchased by Canadian private equity firm TPG in November.
“This is the first step in a long process of securing a long-term future for BlueHost,” said Canadian Infrastructure Minister Rob Nicholson, in a statement.
“We look forward to continuing to work with the company to build a successful Canadian online business.”
In March, the Canadian government announced a $1.5 billion stimulus package for Canadian infrastructure projects, including $300 million for Canadian internet infrastructure, and $10 million for Bluehost.
“BlueHost is an important member of our Canadian infrastructure portfolio,” said Nicholson in the statement.
The government’s announcement is just the latest twist in a decades-long relationship between Canada and the private internet provider.
BlueNet, which BlueHost operates under, was launched in 2006 and has since provided Canadian internet users with a choice of services from a range of providers, including Akamai and Dyn.
BlueTowers, which was launched by the Canadian Government in 2013, was established by the private sector to provide online service to Canadian government departments and agencies.
Earlier this year, BlueHost announced a merger with the U.S.-based provider Dyn.
The Canadian government’s recent announcement that it would buy BlueHost has raised questions about the countrys long-standing relationship with the web hosting giant.
The news was met with disappointment by many users, with some commenting on Twitter that the government had “betrayed Canadians and Canadians-turned-foreigners” by purchasing BlueHost.
But the Canadian industry is expected to provide Canadian consumers with better access to online services, and many people have pointed out that the company’s business model is based on a profit-driven model that is more efficient than others.
According to data from the Canadian Association of Internet Service Providers (CISAOP), the Canadian internet service market is expected grow by more than 20 percent from 2021 to 2025.
The industry is also predicted to grow at a faster rate than the broader U.K. market.
Blue Host was founded in 2005 by Marc Benioff, who previously worked at Yahoo, before joining TPG.
He became the company president in 2016 and has overseen the company since.
In addition to BlueHost, the company offers cloud-based hosting solutions for businesses and governments, as well as business-to-business and business-server hybrid hosting services.
Blue hosts more than 500,000 web servers and about 1.4 million websites, according to a spokesperson for Blue Host Canada.