IX Web Hosting Acquired by Endurance International Group
Published on 19 Feb 2016 | Last updated on 19 Feb 2016
In June of 2015 Endurance International Group (EIG) acquired Site5. It was revealed today that EIG purchased another big web hosting company in the last quarter of 2015, IX Web Hosting. EIG acquired the assets of Ecommerce, LLC (the parent company of IX Web Hosting) for $28 million in November 2015.
The Ecommerce, LLC acquisition includes a total of 72,000 subscribers from three different hosting brands: IX Web Hosting, Cloud by IX, and Host Excellence (all three have been added to the long list of EIG hosting companies).
Full Year and Fourth Quarter Operating Highlights
Total subscribers on platform were approximately 4.669 million, including approximately 72,000 subscribers from the IX Web Hosting acquisition completed during the fourth quarter. See “Total Subscribers” below.
Average revenue per subscriber (ARPS) for fiscal year 2015 was $14.29, compared to $14.48 for fiscal 2014. ARPS for the fourth quarter was $14.15, compared to $14.78 for the same period a year ago.
During the quarter, the company acquired the assets of Ecommerce, LLC (IX Web Hosting). The total consideration for this acquisition is approximately $28.0 million, of which $23.8 million was paid at closing.
EIG is a joint partner with WZ UK Ltd. on several “site builder” brands including SiteBuilder.com, WebsiteBuilder.com, Sitey, and Sitelio. This earnings report also revealed that in early 2016, EIG increased it’s equity ownership in WZ UK Ltd. to a majority stake of 57.5%.
Subsequent to the quarter end, on January 6, 2016, the company exercised an option to increase its stake in WZ UK Ltd., a provider of technology and sales marketing services associated with web builder solutions, from 49 percent to 57.5 percent, in exchange for a payment of approximately $2.1 million to the other shareholders of WZ UK Ltd.
On November 2nd, 2015, EIG announced a definitive agreement to acquire Constant Contact. EIG completed the $1.1 billion acquisition of the email marketing/software company Constant Contact on February 9th, 2016.
Also subsequent to the quarter end, on February 9, 2016, the company acquired the outstanding shares of Constant Contact in a cash deal valued at $1.1 billion.