It is being reported that Endurance International Group is raising $225M with proceeds from the transaction backing the website hosting company's acquisition of Houston-based Hostgator.
This isn't the first acquisition for Endurance International Group as they have actually amassed an increasing share of the web hosting market with companies like:
AccountSupport
BizLand
BizHostNet
BlueDomino
BlueHost
Dot5
DomainHost
EasyCGI
eHost
EntryHost
FastDomain
FatCow
FreeYellow
HostCentric
HostClear
HostYourSite
HyperMart
HostMonster
ImOutDoors
iPowerWeb
iPage
JustHost
NetFirms
NetWorksHosting
PowWeb
PureHost
ReadyHost
Startlogic
SuperGreen Hosting
USAnetHosting
VirtualAve
Xeran
And now HostGator.. pending
Well it does appear that there may be some truth to the whispers and HostGator has been added to the proceeding list.
Wed, 27 June 2012, 22:04
Removing Choopa.. but adding three others!
I stand corrected.. again!
Wed, 27 June 2012, 16:56
Choopa is not affiliated or owned by EIG.
Fri, 22 June 2012, 20:52
I stand corrected Nick.. ServerBeach is Peer1.
They are no longer on the long list of Endurance acquisition ;)
Fri, 22 June 2012, 19:30
ServerBeach is Peer1, not EIG.
Thu, 21 June 2012, 05:08
Endurance, a provider of website hosting, is preparing to launch a $225 million credit facility backing its acquisition of Hostgator, according to a person with knowledge of the deal.
Lead bank Credit Suisse will hold a lender conference call Wednesday at 10:30 a.m. EST.
The facility comprises a $100 million first-lien term loan B priced at Libor plus 625 bps, with a 1.5% Libor floor and an offer price of 98 cents on the dollar; and a $125 million second lien priced at Libor plus 950 bps, with a 1.5% Libor floor and a 98-cent offer price.
The terms of the transaction also include 101 soft-call protection until April 2013 on the first lien, meaning that if the loan is refinanced before that date, investors will receive a premium of 1% of face value. Soft-call protection on the second lien extends four years at 103 in the first year, 102 in the second year, 101 in the third year, and par in year four.
The Burlington, Mass.-based company currently holds a B1 rating from Moody’s Investor Services and a B rating from Standard & Poor’s.
A provider of online solutions for small and medium-sized businesses, Endurance serves close to 1.8 million customers through more than 30 distinct hosting brands, according to its website.
Houston-based Hostgator provides shared, reseller, virtual private server and dedicated web hosting, according to its website. It was founded in 2002 by Brent Oxley, now the company’s chairman, who started Hostgator from his dorm room at Florida Atlantic University.