Internet service and online marketing company Web.com has been acquired by equity firm Sirius Capital Group for USD 2 billion in an all-cash deal. With this acquisition, Sirius Capital aims to tap new growth opportunities to extend Web.com’s domain business by leveraging the former’s strategic and investment capabilities.
Sirius Capital says that the domain business is creating a ripple effect in the SMB segment. They say that the rise in new businesses and the intent of the decision makers to grab customers from online channels has been responsible for the boom in the domain business.
By acquiring Web.com, Sirius Capital claim that they will gain easy access into the small and medium enterprise segment that is looking to leverage online presence. They claim that Sirius Capital will be able to support these businesses with the strategic acumen to help them grow into larger enterprises.
Speaking about the acquisition, David L. Brown, Chairman, CEO and President of Web.com, commented:
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.
Based on our extensive engagement with Siris over the past two months and our prior discussions with them, we are confident that Siris’ support will enable Web.com to execute on its strategy and next phase of growth.
Sirius Capital are equally excited to work with Web.com’s team. Frank Baker, Co-Founder of Siris Capital, commented:
We are excited to partner with Web.com as it embarks on this new chapter of growth and market leadership. As a private company, Web.com will be able to make strategic investments for sustainable and profitable growth, while remaining agile and focused on delivering best-in-class solutions to its customers.