June 29, 2007 - (HOSTSEARCH.COM) - Web hosting providers Website Pros (http://www.websitepros.com) and Web.com (http://www.web.com) have “signed a definitive merger agreement,” it was announced yesterday. The union of the organizations creates a potential web hosting powerhouse with a combined 235,000 subscribers and a yearly income of around $115 million. The merger is subject to shareholder reviews and approvals but is expected to be completed during the second half of 2007.
"The combination of Website Pros and Web.com represents a milestone event in the highly fragmented web services market for small and medium-sized businesses, and is an investment in growth and scale that expands the customer base and value proposition for both companies," explained Website Pros’ President and CEO, Mr. David Brown. "Web.com is highly synergistic with Website Pros from a product and services offering, market focus, and distribution channel perspective. Website Pros' Do-It-For-Me web services, outbound sales and proven lead generation partners coupled with Web.com's Do-It-Yourself web services, online marketing expertise, and complementary channel of SMB-focused partners make for a formidable player in the industry. The SMB market is very large with over 25 million SMBs in the U.S. alone, and I am excited to work with Jeff Stibel and his excellent team ensuring that our combined organization capitalizes on this tremendous opportunity."
"We are very pleased that our success since new management took over in August 2005 has led to an approximate 200% increase in shareholder value and has positioned Web.com to realize further value through a merger with Website Pros," added Web.com’s President and CEO, Mr. Jeff Stibel. "Over the last two years, the company has restored and accelerated top line growth, generated record levels of subscriber growth and has significantly improved its operational and financial performance. This complementary merger is a logical next step that has the potential to create substantial value for customers, partners and shareholders of both Web.com and Website Pros."
The merger creates significant cross-selling opportunity through highly complementary sales channels alongside operating cost synergies resulting in a likely pre-tax savings of approximately $5 million to $7 million in 2008. David Brown will remain as Chairman and Chief Executive Officer of Website Pros. Jeff Stibel will become President of Website Pros, and join its Board of Directors.
