Endurance International Group (EIG) has officially announced that it has signed an agreement with Clearlake Capital Group (Clearlake) to complete a full cash sale of up to $3 billion, including outstanding debts.
Nearly 20 years of operation, this group has acquired many subsidiaries, thereby expanding the scope of activities with main products and services in the following fields: Domain, Hosting, Email Marketing, SEO … Some prominent names must be mentioned such as Constant Contact, Bluehost, HostGator, BigRock, Domain.com, etc.
EIG’s current directory has more than 80 subsidiaries, details can be found on Wikipedia.
Meanwhile, Clearlake Capital is a leading investment firm founded in 2006, doing integrated businesses across private equity, credit, and other related industries.
Representatives of Clearlake appreciated Endurance, as they “have established a leading position in the large Domain & Hosting market and Digital Marketing software. Clearlake looks forward to partnering with this talented team and supporting long-term strategic planning to drive growth through a focus on customer value ”.
EIG’s Board of Directors has unanimously approved that Clearlake’s affiliates will buy back all of Endurance’s outstanding common shares for $9.50/share. The price level created a lot of surprises when it was 79% higher than the stock price on September 25, 2020 ($5.3), the last trading day before any information leak to the media. This is also 64% higher than the stock’s closing price on October 30, 2020, of $5.81.
EIG’s chairman and CEO said they were “very pleased with the deal”. The transaction is expected to close in the first quarter of 2021 and must be approved by Endurance shareholders. Also, the customary closure conditions (including the adoption of antitrust regulations) must be met.
Upon completion of the acquisition, Endurance becomes a wholly-owned affiliate of Clearlake.
See full notice here.