Web.com agrees to be bought by Siris Capital in $2bn deal

Web.com Group, a provider of internet services and online marketing solutions, has agreed to be bought by an affiliate of Siris Capital Group in an all-cash deal valued at around $2bn.

Under the terms of the agreement, which has been unanimously approved by the members of Web.com’s board of directors, an affiliate of Siris will acquire all of its outstanding common stock for $25.00 a share in cash. This represents a 30% premium over Web.com’s 90-day volume-weighted average price ended on 19 June.

Web.com may solicit alternative acquisition proposals from third parties during a "go-shop" period from the date of the agreement until 5 August but the group said there is no guarantee this process will result in a superior proposal, adding that the agreement provides Siris with a customary right to match a better deal.

Chairman and chief executive officer David L Brown said: "This transaction will provide shareholders with immediate and substantial cash value, while also providing us with a partner that shares in our commitment to customers and employees and can add strategic and operational value. Based on our extensive engagement with Siris over the past two months and our prior discussions with them, we are confident that Siris’ support will enable Web.com to execute on its strategy and next phase of growth."

Frank Baker, co-founder of Siris Capital, said: "We are excited to partner with Web.com as it embarks on this new chapter of growth and market leadership. As a private company, Web.com will be able to make strategic investments for sustainable and profitable growth, while remaining agile and focused on delivering best-in-class solutions to its customers."

The proposed deal is expected to close in the fourth quarter and is subject to approval by Web.com’s shareholders, along with the satisfaction of customary closing conditions and antitrust regulatory approvals.