Web.com Buys Domain Registrar And Hosting Company Network Solutions For $560.8 Million

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.