Investment firm Clearlake Capital Group (Clearlake Capital Group L.P.) has acquired hosting giant Endurance International Group (EIG). Burlington, Massachusetts-based EIG was founded in 1997 and is the umbrella organization for a broad range of hosting brands including Bluehost, CrazyDomains, HostGator, Network Solutions, Register.com, Web.com, and iPage. Through its brands, the group offers cloud and hosting services, website building, and mobile web development options. It also offers domain registration alongside business marketing services.
Post-acquisition EIG will be known as
Newfold Digital. The acquisition was made at $9.50 per share in an “all-cash transaction valued at approximately $3.0 billion including outstanding indebtedness”. The deal is likely to be completely finalized in the first quarter of 2021 pending antitrust regulatory clearance. Clearlake will finance the acquisition using a blend of its own funds and committed equity financing. Once finalized “Endurance will become a wholly-owned affiliate of Clearlake”.
“We are pleased with this agreement which recognizes the value of our multi-brand scale platform,” explained EIG’s President and CEO, Jeff Fox. “We are proud to serve approximately 5 million customers worldwide as a provider of solutions that help small and medium businesses succeed online and enhance the value of their customer relationships.”
“The Endurance family of brands has built a leading position in the large and growing cloud hosting, domain, and digital marketing software space,” added Clearlake’s co-founder and managing partner Behdad Eghbali and Partner James Pade in a statement. “We look forward to partnering with this talented team and supporting its long-term strategic plan to drive growth through its focus on customer value. We are excited to leverage Clearlake’s O.P.S. framework to help the company fuel growth both organically and through acquisitions.”
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