Web.com intends to acquire privately-held domain name registration provider Register.com for $135 million.
The numbers look good on the surface: Register.com has over 800,000 subscribers, bringing the total customer base to approximately 1 million; Web.com revenue will climb by 80 percent to an anticipated $180 million in annualized adjusted subscription revenue, and the deal provides a welcome $10 million in cost savings.
What does the financing look like? Web.com will finance this deal with $20 million in cash, $110 million in loans and a $5 million seller note.
The portfolio of complementary services is fantastic and now creates numerous Web hosting options, domain registration, Website design, Internet marketing, call center services, eCommerce and other merchant services as well as lead generation and other tools required to run a successful small business.
But will the company successfully pull it together and create a true market leader?
David Brown, CEO of Web.com, is confident: “Web.coms significantly enhanced scale and cash flow will provide the company with far greater resources to invest in sales and marketing programs to drive long-term growth.”
There’ll be time enough for countin’ when the dealin’s done, as the song goes.
HostingCon 2010, just around the corner, again.
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