Internet services company Web.com has acquired domain registrar and hosting provider Network Solutions for $405 million in cash plus 18 million shares of Web.com stock, valuing the transaction as $560.8 million
Network Solutions, which is currently owned by private equity firm General Atlantic, provides domain registration, e-commerce, search engine optimation, other online promotion services, hosting and email to millions of small businesses.
Web.com says there is a large opportunity in selling its SEO, online marketing, Facebook and mobile offerings to Network Solutions’ two million retail customers and hundreds of thousands of wholesale customers.
Web.com says that the combined company will generate non-GAAP revenue in the mid-$450 million range for 2011 and pro forma adjusted EBITDA of at least $120 million for 2011 before cost synergies and transaction expenses.
Last year, Web.com shelled out $135 million for Register.com.
Web.com Group, Inc. (Nasdaq:WWWW) is a leading provider of internet services and online marketing solutions for small and medium businesses. Web.com meets the needs of small and medium businesses anywhere along their lifecycle by offering a full range of online services and support, including domain name registration services, website design, logo design, search engine optimization, search engine marketing and local sales leads, general contractor leads, franchise and homeowner association websites, shopping cart software, eCommerce web site design and call...