Congratulations to our friends at Web.com on their agreement to sell the business to Siris Capital Group, LLC. for $28/share. The price reflects an Enterprise Value of approximately $2 billion and appears to be 10-11x Adjusted EBITDA (L3MA.)

The final purchase price of $28/share was an increase from the $25/share initially announced prior to the go-shop period thirty days prior and reflects some last minute bidding by prospective suitors.

Web.com is one of the older US hosters having been a startup by Norwest Venture Capital in the late 1990's. The transaction is expected to close in the fourth quarter of 2018.

As always, please feel free to contact us if you have any comments, or questions.

Cheval Capital, Inc.

Disclaimer: This post is for general information purposes and is not meant to be taken as financial advice, a recommendation to buy or sell the stocks mentioned above, a comprehensive discussion of valuation or how to do the calculations discussed. Please be sure to consult your financial advisors when valuing your company, considering the sale of your business or making other financial decisions.

Author: Hillary Stiff is Managing Director of Cheval Capital. She has been an investment banker and CFO, completing M&A transactions and arranging financing for a number of companies including NTT/Verio, The Endurance International Group and Web.Com among many others. She has helped complete over 450 successful web hosting, ISP and related transactions and distributes a list of hosting and related companies that are for sale.

Blog