Atlanta, Georgia – (The Hosting News) – December 28, 2005 – Publicly-held shared web hosting company, Interland, has announced that it has completed its asset acquisition from Web Internet, LLC (also known as Web.com) and Web Service Company Inc.
A direct result of the acquisition will include a name change for the company – from Interland to Web.com. The formal name change is expected to take place in the next several months.
Included in the assets acquired from Web Internet are the domain name Web.com, web hosting business comprised of approximately 9,000 subscribers, accredited registrar business and trademark rights. Interland paid approximately $4.8 million in cash, restricted stock and assumed liabilities. Roughly half of the consideration consists of assumed liabilities, including debt in the form of a low-interest 3% loan payable over three years.
Interland’s name change to Web.com is a strategic move designed to clearly align the company with its branded line of business: offering web services (including websites, web hosting, and web marketing) for small and medium-sized businesses and consumers.
According to Jeff Stibel, President and CEO of Interland, ”Acquiring Web.com is an exciting step toward increasing our market penetration. Web.com is an under-utilized asset that we can unlock to reach its full potential. In addition to a tremendous branding opportunity, this acquisition adds revenues, significant direct navigation traffic, and an entrance into the consumer segment of the web hosting market.”
The Web.com acquisition is anticipated to bring approximately $75K in monthly hosting revenues. The Web.com assets also generate one-time, non-recurring revenues which are not included in the recurring revenue total, such as domain registrations, domain privacy, URL forwarding and advertising and commerce revenues.
Interland intends to integrate Web.com’s offerings and customers within Interland’s infrastructure to maximize efficiencies and cost savings. Current Web.com CEO, Will Pemble, will join Interland as an Executive Vice President and will focus on building Web.com’s consumer and registrar business.
To learn more about Interland, please visit: www.interland.com.