(The Hosting News) – Is an acquisition of popular web host HostGator in the works for web-based company Endurance International (EIG)? According to a letter appearing on pastebin.com, such a move could prove true. In the text, a writer purported to be HostGator founder Brent Oxley confirms the selling of his company in a letter to “Fellow Gators.”
The supposed internal document indicates that the acquisition will occur within “the next 3-4 weeks” and the writer purported to be Oxley discusses the move as a growing opportunity for his company. A portion of it focuses on EIG’s previous acquisition of HostGator competitor Bluehost in 2010.
“When I first heard about EIG purchasing Bluehost in November 2010, I was extremely ecstatic. The first thoughts that came to mind were that EIG was going to destroy the company, resulting in one of our biggest competitors going the way of the dodo. However, rather than plunder and pillage, they’ve hired and flourished,” reads the text.
Oxley emphasizes that EIG’s acquisition of Hostgator could have the same positive effect for his company. The letter even cites the industry’s top domain registrar. “In fact, I’ve heard that EIG with HostGator will be even bigger than GoDaddy,” the document continued. Go Daddy was previously sold to a private equity firm partnership for $2.25 billion in 2011.
Among the reasons for the sale? The writer cites a possible tax increase next year, their wish to travel the globe before having children and the prospect of taking on “a new challenge.” The letter also discusses building expansions at the company’s Austin and Houston office presences. The possible acquisition follows EIG’s raising of $225 million dollars for the buyout, according to a post on HostJury.com.
As a web host, HostGator provides web, dedicated, reseller and VPS hosting. The company has more than 750 employees according to the company’s website. In June of last year, the web host announced that it would substantially increase the pace of hiring at its Austin headquarters, a move that it said would add 500 new jobs within a span of one year.