Web.com agrees to $2 billion buyout

Jacksonville-based Web.com Group Inc. Thursday morning announced a $2 billion agreement to be acquired by an affiliate of private equity firm Siris Capital Group LLC.


  • By Mark Basch
  • | 9:20 a.m. June 21, 2018
  • | 5 Free Articles Remaining!
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Jacksonville-based Web.com Group Inc. Thursday morning announced a $2 billion agreement to be acquired by an affiliate of private equity firm Siris Capital Group LLC.

Siris will pay $25 a share in cash to buy the company, which Web.com said is a 30 percent premium above its average price over the past 90 days.

Web.com’s stock closed Wednesday at $23.20, but the stock has been rising for the past month since activist fund Starboard Value LP revealed it was buying shares of the company, prompting speculation it would push the company toward some type of transaction.

The deal is subject to a “go-shop” period until Aug. 5 in which Web.com could seek higher offers.

“This transaction will provide shareholders with immediate and substantial cash value, while also providing us with a partner that shares in our commitment to customers and employees and can add strategic and operational value,” Web.com CEO David Brown said in a news release.

“Based on our extensive engagement with Siris over the past two months and our prior discussions with them, we are confident that Siris’ support will enable Web.com to execute on its strategy and next phase of growth.”

 

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