Endurance International Group Holdings Inc., (EIG) is a leading provider of hosting, domain, and email marketing solutions. EIG, which aims to ensure the online success of small and medium-sized businesses, has revived talks about a possible sale.
Endurance International Group’s Financial Status
Endurance’s objective is to provide millions of businesses with products and technology that build their online web presence. They saw their shares grow from 15% to 22% back in September.
However, the company saw even more growth recently, going up by 19% to reach $6.32. That boost in market value drove EIG’s valuation up by $885 million.
Sell-Off Might Be Happening Sooner Than Expected
Despite their dedication to assisting small businesses, Endurance has fallen behind on its finances. The I.T. Solutions company announced on November 2, 2020, that it has entered into a merger agreement that will allow Clearlake Capital Group L.P. affiliates to acquire it.
The all-cash deal, which got valued at around $3 billion, includes buying up EIG’s outstanding debt.
Under the unanimously approved terms of the agreement, Clearlake’s affiliates will obtain all of Endurance’s outstanding common shares for $9.50 per share.
Endurance shareholders will hold a special meeting after a definitive proxy statement with the U.S. Securities and Exchange Commission (the SEC) has been filed.
Additionally, some associates of Warburg Pincus and Goldman Sachs Private Equity Partners have entered into a voting agreement that requires them to vote about 36% of the outstanding shares of Endurance’s common stock in favor of accepting the acquisition agreement.
Endurance CEO’s Response
The President and Chief Executive Officer of EIG, Jeff Fox, responded to the impending sale. He says that the agreement recognizes the value of Endurance’s multi-brand scale platform.
Mr. Fox added that the group is proud to serve roughly five million customers worldwide as an I.T. solutions provider for small and medium businesses.
About Endurance International Group
Endurance International Group Holdings, Inc., formerly BizLand, focuses on providing millions of small businesses with products, content, and technology that enhance their business solutions, online web presence, email marketing, connecting with customers online many more.
With its headquarters in Burlington, Massachusetts, Endurance boasts over 3,700 employees across Brazil, India, the United States, and the Netherlands. The company has over 4.5 million customers.
About Clearlake Capital Group
Clearlake Capital Group is an established private investment firm founded in 2006. With a sector-focused approach, the firm prides itself on collaborating with leading management teams by providing long-term capital to businesses that can benefit from its operational improvement approach. José E. Feliciano and Behdad Eghbali lead Clearlake.
Clearlake’s target sectors include software and technology-enabled services, industrials and energy, and food and consumer services. Clearlake has approximately $25 billion of assets under management, and its senior investment principals have led or co-led over 200 investments.
* Jeff Fox Image Credit: The Economic Times