Greatresponder.com – 2011-08-03 – On Wednesday, the web hosting innovative provider Web.com made the announcement that it has bought the web hosting provider Network Solutions from private equity firm General Atlantic. This announcement was made almost a full year after Web.com acquired Register.com. This was a high-profit deal for the web hosting provider. A $135 million deal.
As stated in the press release, this acquirement will generate an “end-to-end online solutions company with a clear path to $500 million in non-GAAP revenues.”
This big step by Web.com is very beneficial for Web.com both of the two companies provide customers with a pretty similar variety of services aimed at the SMB market. Those services consist of web hosting, domain registration, web design, e-commerce solutions, online security products, SSL certificates, as well as search engine marketing and optimization.
The web hosting provider states that combining the two companies will be positioned to offer “revenue growth in the low teens”.
Web.com will pay Network Solutions $405 million in cash and issue 18 million shares of Web.com common stock upon closing. Furthermore, it will refinance the current net debt of Network Solutions and pay certain fees.
“This transaction represents a unique opportunity to dramatically expand our scale, add further momentum to Web.com’s already improving top line growth, and further expand our market share as the nationally recognized go-to provider of online marketing solutions specifically tailored to small and medium-sized businesses. Our integration strategy will be similar to our successful acquisition of Register.com, and we will be in a strong position to cross-sell and up-sell our services to Network Solutions’ approximately two million retail customers and hundreds of thousands of wholesale customers. We believe this combination will provide significant long-term shareholder value as we grow our business, capitalize on synergies, improve our margins and generate substantial cash flow to invest greater resources in growth and branding initiatives” says the CEO and chairman of Web.com, David Brown.
The acquisition is expected to be completed in the fall, and at the close, General Atlantic and other current Network Solutions shareholders are expected to own about 37 percent of Web.com.