After putting its $2 billion buyout agreement out for potentially higher bids for 45 days, Web.com Group Inc. on Monday announced Siris Capital Group Inc. agreed to increase the purchase price by $3 a share.
Web.com on June 21 announced the agreement for affiliates of Siris to buy the Jacksonville-based company for $25 a share.
However, the agreement included a 45-day “go-shop” period which allowed the company to seek better offers.
After the go-shop period expired Sunday, Web.com on Monday announced the new agreement with Siris to pay $28 per share to buy the company, which provides website development services for businesses.
Web.com said its financial advisers contacted 87 potential bidders and nine of those signed non-disclosure agreements to access more information about the company during the go-shop period.
One “financial bidder” did make a higher offer, prompting Siris to increase its price, the company said.
While Web.com signed a new agreement with Siris, that financial bidder or another party can still make a higher offer. Otherwise, Web.com expects to close the deal with Siris in the fourth quarter and become a private company.
Web.com previously said it expects to keep the same name under the new owner. It also said the buyout will not affect its plan to move next year into a new 218,000-square-foot headquarters under construction at 5379 Gate Parkway.