(The Hosting News) – One of the top and oldest tech companies just sold. On Wednesday, internet and marketing services provider Web.com announced that it had acquired Network Solutions, a company that is well-known for its domain registration service.
In fact, the registrar has been around for so long, according to Mashable, Network Solutions used to be the only place for users to purchase domain names for their websites. The transaction is worth $405 million. In addition to paying for the transaction, Web.com is also issuing stock.
Network Solutions was launched in 1979 and initially focused on tech programming before expanding into domain registration in the early 90’s after being contracted by a U.S. government agency. Aside from registration, Network Solutions has also handled marketing.
With the acquisition, Web.com seeks to create “a leading end-to-end online solutions company” and will provide various marketing services to small and medium sized businesses.
The transaction will also give the combined companies a wider range of services. According to Network Solutions CEO Tim Kelly, the “combined company will have tremendous know-how and a broad portfolio of online marketing, web services, social media and mobile solutions to help small businesses grow in the increasingly connected online world.”
Commenting on the matter, Web.com CEO David Brown stated, “This transaction represents a unique opportunity to dramatically expand our scale, add further momentum to Web.com’s already improving top line growth, and further expand our market share as the nationally recognized go-to provider of online marketing solutions specifically tailored to small and medium-sized businesses.” Just last year, Web.com made another high-profile transaction when it acquired Register.com. That deal was said to be worth $135 million, quite a bit less than the latest transaction.
The transaction is just the latest move in those affecting the hosting industry. Early last month, in a deal worth around $2.5 billion, private equity firms led by KKR & Co. bought Go Daddy Group.
Meanwhile, the deal concerning Web.com’s acquisition of Network Solutions has yet to be finalized. However, it should be complete by sometime in the fall. For more information on the acquisition, visit: http://ir.web.com/releasedetail.cfm?ReleaseID=596511