San Francisco, California – (The Hosting News) – November 7, 2005 – Private equity company, Vector Capital, today announced the close of its acquisition of Register.com, a leading domain name registrar and web hosting company. Vector acquired Register.com for $7.81 per share, or approximately $200 million.
Based in New York, New York, Register.com is best known for its premium domain name management services, with nearly three million names under management across nearly one million small business, corporate and individual customers. Register.com provides domain name registration services for over 240 different country codes along with an expanding set of online and e-commerce services that help customers bring and market their businesses online.
According to Alex Slusky, Vector Capital Managing Partner, ”Register.com’s strong brand, large customer base, and profitable business model make it a rare investment opportunity. We believe we can grow its revenue significantly while refocusing its operations, and we look forward to working with the company’s talented team to build lasting value in this business.”
Amish Mehta, a Partner at Vector Capital added, ”Over the past decade, Register.com has provided the first step to an Internet presence for nearly a million small and medium sized customers. Today, we look forward to helping these customers further develop and maintain their Internet footprint by delivering a broad range of innovative value-added services including email, website hosting and traffic management. Vector is also committed to preserve Register.com’s market-leading customer service and support.”
Register.com is an example of how Vector partners with public companies with a strong customer base and brand name products but limited opportunities for growth as public entities. Vector Capital offers management teams of such companies an opportunity to go private and rebuild their businesses away from the distractions and resource demands of the public markets.
Register.com is the first investment in Vector Capital III, a new $350-million private equity fund raised by Vector earlier this year. Limited partners in the fund include university endowments, foundations, family offices, funds of funds, and pension funds. Two thirds of these investors also participated in Vector Capital II, Vector’s previous fund.
Register.com joins several other Vector Capital portfolio companies from previous Vector Capital funds, including: LANDesk Software, spun-out from Intel Corporation, Savi Technology, spun-out from Raytheon Corporation and Corel Corporation, maker of the popular WordPerfect, CorelDRAW and Paint Shop families of productivity and creativity software, which Vector took private in 2003.
David Moore, Interim CEO of Register.com, will remain in that position while Vector Capital performs a search for a permanent CEO.
To learn more, please visit: www.vectorcapital.com.