DigitalOcean Holdings (NYSE: DOCN), the cloud platform for small businesses and start-ups, just announced another acquisition. The company said it plans to acquire managed hosting service provider Cloudways for $350 million in cash. This purchase is a little different from what DigitalOcean's focus has been in the past, but it could make a lot of sense -- especially for the clients DigitalOcean serves.

Striking the deal was somewhat expensive for DigitalOcean and it represents a completely new business for the infrastructure company. Is the company up to the task of making the deal work and, more importantly, does it make this stock still a buy?  

Before delving into the acquisition itself, let's recap what DigitalOcean and Cloudways do. DigitalOcean is a cloud infrastructure business. Developers and small businesses can "rent" computing hardware that is housed in a data center and access that hardware via an internet connection. This computing hardware can be used to build applications, like a business website or a mobile app. 

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Source Fool.com