Endurance Acquired by Clearlake Capital Group for $3 Billion

Endurance Acquired by Clearlake Capital Group for $3 Billion

Endurance, the company that operates Web hosting Brands like Bluehost, HostGator, Domain.com and others, was acquired from Clearlake Capital Group. Clearlake is purchasing all of Endurance’s outstanding common stock for $ 9.50 per share in cash. The transaction is valued at approximately $ 3.0 billion including outstanding debt.

Headquarters in Burlington, Massachusetts, endurance employs around 3,800 people in the USA, Brazil, India and the Netherlands.

Jeff Fox“We are excited about this agreement that recognizes the value of our multi-brand, scale platform,” said Jeff Fox, President and CEO of Endurance.

The purchase price corresponds to a premium of 79% over the unaffected share price of Endurance of USD 5.30 as of September 25, 2020, the last trading day before media speculation about a possible transaction, and a premium of 64% over the closing price of the share on September 30, 2020. October 2020 from $ 5.81.

“We are excited about this agreement, which recognizes the value of our multi-brand, scale platform,” he said Jeff Fox, President and CEO of Endurance. “We pride ourselves on serving around 5 million customers around the world as a provider of solutions that help small and medium-sized businesses thrive online and increase the value of their customer relationships.”

The proposed transaction is expected to close in the first quarter of 2021 and is subject to approval by Endurance shareholders, along with the fulfillment of customary closing conditions including antitrust approval

Clearlakes OPS Framework

Clearlake will fund the transaction with a combination of committed equity financing from the Clearlake funds and has secured committed debt financing for the proposed transaction, on which no financing condition exists. Upon completion of the acquisition, Endurance will become a wholly owned subsidiary of Clearlake.

“The Endurance family of brands has built a leadership position in the large and growing cloud hosting, domain and digital marketing software,” he said Behdad Eghbali, Co-Founder and Managing Partner, and James Pade, Partner at Clearlake. “We look forward to working with this talented team and supporting their long-term strategic plan to drive growth by focusing on customer value. We’re excited to leverage Clearlake’s OPS framework to help the company drive growth both organically and through acquisitions. “

Q3 sales: $ 278.4 million

Endurance revenue was $ 278.4 million for the third quarter of 2020, an increase of 3 percent over revenue of $ 270.4 million in the third quarter of 2019. Net income for the third quarter of 2020 was 6.7 million. Compared to net income of $ 7.8 million for the third quarter of 2019.

Total number of subscribers on enduranceThe total platform as of September 30, 2020 was approximately 4.965 million, compared to approximately 4.780 million subscribers as of September 30, 2019 and approximately 4.766 million subscribers as of December 31, 2019. Average Revenue Per Subscriber, or ARPS, for the third quarter of 2020 was 18, $ 86, compared to $ 19.35 in the third quarter of 2019 and $ 19.34 in the fourth quarter of 2019.

Founded in 2006, Clearlake is an investment firm with approximately $ 25 billion in assets under management. Clearlake strives to work with management teams by providing patient, long-term capital to dynamic companies from which they can “benefit” ClearlakeThe approach to operational improvement, called OPS. The company’s core target sectors include technology, industry and consumers.