May 24, 2006 (HOSTSEARCH.COM) Web hosting provider Web.com (http://www.web.com) has announced its acquisition of WebSource Media, a provider of simple website solutions to businesses. According to the company the purchase further diversifies Web.com's business, adds an experienced web services sales, marketing and development organization, and is expected to bring profitable revenues to the company.
"With the addition of the WebSource Media business and its management team, Web.com gains market share, access to markets not currently addressed by Web.com and new marketing channels focused on organic growth," suggested Web.coms President and CEO Mr. Jeff Stibel. "Because the consideration payable to the team in this transaction is based on the performance of the business over approximately three years, the WebSource Media team has clear financial targets to achieve that align them with Web.com and its shareholders."
The agreement offers WebSource Medias former owners the chance to acquire up to one million Web.com common stock shares. The company will also receive up to $8.2 million in cash subject to attaining certain profitability milestones. "With over 22,000 paying customers currently, WebSource Media has achieved 13 consecutive quarters of profitability and its business is complementary to Web.com's business model and strategic direction," explained WebSource Medias CEO Marc Smith. "The structure of the transaction places the responsibility on me and my team to generate results and hit key financial milestones. We look forward to working with Web.com's team."