Clearlake Capital to acquire EIGI.
Clearlake Capital Group is acquiring Endurance International Group (NASDAQ: EIGI) in a $3 billion deal (including debt).
The private equity company will pay $9.50 per share, a 64% premium over Friday’s closing price of $5.81.
Endurance International Group is a rollup of web hosting and domain name companies. Its brands include BuyDomains, BlueHost, Hostgator, Domain.com, and Constant Contact, among others.
The company has struggled to integrate its systems and brands over the years and has also suffered under a huge debt load. Its revenue has also struggled to tread water; but in Q3 revenue was up 3% year-over-year.
Share peaked above $20 in 2015. But anyone who bought shares this year will be happy with the result. Shares dipped below $2.00 during the Pandemic panic, and the $9.50 acquisition price represents the highest price the stock has hit since October 2018.
Ryan - DomainAgents says
I’ll think we’ll see more of this in the coming year. Money is cheap and companies in this industry can provide fairly predictable cash flow.
Mark Thorpe says
The writing is on the wall for Endurance! They’re selling out IMO. Product price increases on the way, just like GoDaddy did and is still doing.