|
Web.com,
(Nasdaq:WWWW)
a leading provider of internet services and
online marketing solutions for small and
medium-sized businesses (SMBs), today announced
the signing of a definitive agreement for
Web.com to acquire privately-held Network
Solutions, the original domain name
registrar.
The transaction will create a huge online
solutions company focused on providing web
services to SMBs, a market estimated to be
larger than $19 billion.
|
Under
the terms of the agreement, upon the
closing, Web.com will pay Network
Solutions $405 million in cash
and issue 18 million shares of
Web.com common stock, in addition to
refinancing existing net debt of Network
Solutions and paying certain fees.
Network Solutions is currently majority
owned by General Atlantic LLC, a
leading global growth equity firm.
David
Brown, Chairman and CEO of Web.com.,
said "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." |
|
|
Tim
Kelly
Network Solutions CEO |
Tim
Kelly, CEO of Network Solutions, said,
"Network Solutions has been a pioneer in
this industry for nearly 30 years. We are very
excited to combine our expertise, resources,
customers and award winning customer service
with Web.com. Our combined company will have
tremendous know-how and a broad portfolio of
online marketing, web services, social media and
mobile solutions to help small businesses grow
in the increasingly connected online
world."
The
transaction, which is subject to Web.com
shareholder approval as well as customary
regulatory approvals and closing conditions, is
expected to be completed in the fall of 2011.
At the close, General Atlantic and other current
Network Solutions shareholders are expected to
own approximately 37% of Web.com. |
|
