Monday 10th December 2018

Web.com agrees to $2 billion acquisition by Siris Capital Group

The proposed acquisition has sparked some controversy and legal firm WeissLaw is currently investigating whether it represents a "fair deal" for shareholders. The web host frequently places in the lower half of our monthly web host rankings.
Jason Smith
by on 26th June 2018

Web.com, a domain registrar, web host and web development organization, has agreed to be acquired by Siris Capital Group for $25 per share and for a total cash value of $2 billion, according to an announcement published on its website.

The deal would put Web.com Group under the control of an affiliate of Siris and the deal is expected to be concluded by Q4 2018.

According to its latest earnings report, the group had 3.35 million subscribers at the end of Q1 2018, which is a decline of 150,000 year-on-year. Total revenues were $188 million for the quarter.

Its hosting services also frequently feature in the lower half of our monthly web host rankings. Last month, it was placed last out of 17 web hosts after maintaining and average uptime of 99.75 percent and a response time of 2,867ms.

The deal is currently in what is referred to as a “go-shop” period, whereby Web.com has until August 5th, 2018, to solicit alternative proposals from interested third parties.

The acquisition has also sparked some controversy over whether it represents a fair deal for Web.com’s shareholders.

In an announcement on its website, legal firm WeissLaw LLP states it’s “investigating possible breaches of fiduciary duty and other violations of law by the Board of Directors of Web.com Group, Inc. …in connection with the proposed acquisition of the Company by Siris Capital Group, LLC.”

It goes onto to state that “at least one analyst set a target price of $32.00 per share, $7.00 above the offer price.”

Commenting on the acquisition, David L. Brown, chairman, CEO and President of Web.com stated, “This transaction will provide shareholders with immediate and substantial cash value, while also providing us with a partner that shares in our commitment to customers and employees and can add strategic and operational value.”

Web.com has acquired a number of organizations over the last few years, including Register.com for $135 million in 2010 and Network Solutions for $405 million in 2011.