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Jax Daily Record Friday, May 26, 201712:00 PM EST

Reuters: Web.com considering buyout

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by: Mark Basch Contributing Writer

Jacksonville-based Web.com Group Inc. is talking to private equity firms about a possible buyout, Reuters news service reported Friday morning.

Citing unnamed “people familiar with the matter,” Reuters said Web.com has received interest from possible buyers and has been engaged in “early stage talks” with the firms.

“The company is not actively soliciting offers and there is no certainty that any deal will occur,” Reuters said.

Web.com provides website development services, including domain name registration, for businesses, a sector that “has become increasingly crowded,” Reuters said.

During an Investor Day meeting in New York in December, one analyst asked Web.com CEO David Brown if the company would consider a buyout to lift its stock price.

“We’re completely open to the idea, however we have to build value,” Brown said.

“Up to this point in time, there haven’t been a lot of people knocking on our door to buy the company and pay us a price that was better than what we can create for investors,” he said.

Web.com reported first-quarter earnings of 13 cents a share on revenue of $186.8 million.

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