Endurance International Group

From Wikipedia, the free encyclopedia
(Redirected from Newfold Digital)
Endurance International Group, Inc.
Nasdaq: EIGI (2013-2021)
IndustryInternet hosting services
PredecessorBizLand
Founded1997 (1997)
Founders
  • Hari Ravichandran
  • Ravi Agarwal
Headquarters,
US
Number of locations
Worldwide
Key people
  • Jeff Fox (CEO)
  • Marc Montagner (CFO)
  • David Bryson (CLO)
  • Kim Simone (COO)
ServicesWeb hosting, domain registration, SEO, email marketing
Number of employees
Over 2,500 (2016)
ParentClearlake Capital
Websitenewfold.com

Endurance International Group (EIG), previously named BizLand, was an IT services company specializing in web hosting. The company was founded in 1997 and headquartered in Burlington, Massachusetts, USA.[1] In 2021 Endurance International Group merged with Web.com forming a new company, Newfold Digital. It is one of the Internet's largest webhosting providers, the company was structured differently from other large hosting companies such as Rackspace, GoDaddy, or 1&1 Ionos. The company has grown its hosting and related business through numerous acquisitions.[2][3][4]

History[edit]

In 2011, Endurance was bought from Accel-KKR by Warburg Pincus and GS Capital Partners, for around $975 million.[5] In September 2013, the company announced plans to raise $400 million in an IPO.[6] The company announced it would list on the NASDAQ under the ticker symbol EIGI.[7] It went public in October 2013 raising $252 million selling shares to the public at $12 each. This was below the company's target goal of $400 million.[8][9]

This path to increased size is similar to the path networking company Verio followed in the 1990s, using free cash flow and access to capital markets[10] in acquiring assets to add to their corporate portfolio.[2] The concept was to roll up small ISPs into one large ISP and achieve economies of scale. Endurance acquired hosting companies domestically and internationally.[4]

In March 2015, the company announced an investment in Netherlands-based technology startup AppMachine, acquiring 40% of the company.[11][12] In August 2015, EIG announced the acquisition of Site5 and Verio Web Hosting from NTT. It is estimated that EIG gained 86,000+ new subscribers through these acquisitions.[13][14] In November 2015,[15] the company acquired Constant Contact, and days later laid off 15% of their workforce.[16] Also in November 2015, EIG acquired the assets of Ecommerce, LLC for $28 million.[17]

In August 2018, the firm's CEO and CFO were fined US$8 million for fraud by the Securities and Exchange Commission (SEC) for misrepresenting company subscriber numbers.[18]

Endurance acquired Ecomdash in October 2019 for $9.6 million in cash, and placed it under the Constant Contact group.[19][20][21]

In November 2020, Clearlake Capital Group announced that it would acquire Endurance International Group for around $3 billion.[22] At the closing of the deal in February 2021, Clearlake Capital announced a few wrinkles. Clearlake spun off the Endurance Web Presence division, including subsidiaries Domain.com, Bluehost, and HostGator.

Endurance Web Presence merged with Web.com to form a new company, Newfold Digital, in 2021. Newfold Digital is a joint venture between Clearlake Capital and Siris Capital Group, owner of Web.com since 2018.[23][24]

Clearlake also spun off the Constant Contact division of Endurance into a separate joint venture between Clearlake and Siris.[25]

Subsidiary brands[edit]

The company has owned and operated numerous hosting businesses, with shared support information and support agents. Subsidiaries and brands include:[26][27]

References[edit]

  1. ^ "The Endurance International Group, Inc". Bloomberg Businessweek. Archived from the original on July 24, 2010. Retrieved April 12, 2011.
  2. ^ a b "Endurance, GoDaddy, Wix, And Web.com: Choosing Growth Or Leverage". seekingalpha.com. 27 March 2015.
  3. ^ "Endurance International Group (EIG) – The World's Largest Web Hosting Company You've Probably Never Heard Of". hostingkingdom.com. 24 November 2014.
  4. ^ a b Miller, Rich (May 9, 2007). "IPOWER, Endurance International Announce Merger". NetCraft.com.
  5. ^ Demos, Telis (15 March 2013). "Web Hoster Endurance International Preps for IPO". Wall Street Journal. WSJ. Retrieved 17 April 2014.
  6. ^ "Form S-1". www.sec.gov.
  7. ^ "Endurance International Group Holdings, Inc. Common Stock (EIGI)". NASDAQ.com.
  8. ^ "ENDURANCE INTERNATIONAL GROUP HOLDINGS, INC. (EIGI) IPO". NASDAQ.com.
  9. ^ Bray, Hiawatha (October 26, 2013). "Endurance Web hoster Endurance raises $252 million in IPO". The Boston Globe. Retrieved February 9, 2023.
  10. ^ "Verio Secures Funding for Acquisitions". internetnews.com.
  11. ^ "AppMachine Partners Up With Endurance International Group". AppMachine.com.
  12. ^ "AppMachine raises $15.2 million, partners with Endurance International Group". StartupJuncture.
  13. ^ "Endurance International Group Reports 2015 Second Quarter Results". marketwatch.com. Aug 4, 2015. Retrieved 2016-05-18.
  14. ^ "EIG's Acquisition of Verio and Site5 Nets 86,000 New Subscribers". Web Host Industry Review. Retrieved 2016-03-29.
  15. ^ "Email marketing giant Constant Contact acquired for $1 billion". VentureBeat. 2 November 2015. Retrieved 2015-11-02.
  16. ^ "Constant Contact Cuts 15 Percent of Staff After Its Acquisition". Xconomy.com.
  17. ^ "EIG Reports 2015 Fourth Quarter and Full Year Results" (Press release). Retrieved 2016-10-07.
  18. ^ "Indian-origin executive settles charges with SEC, another charged for making false claims". The Times of India. 25 August 2018. Retrieved 2019-07-31.
  19. ^ Batavia, Gaurav (September 10, 2019). "Endurance International to acquire Ecomdash for $9.6M". Seeking Alpha.
  20. ^ "Endurance International Group Reports 2019 Fourth Quarter and Full Year Results". GlobeNewswire News Room (Press release). Endurance International Group Holdings. 2020-02-06. Retrieved 2020-04-15.
  21. ^ "Endurance International Group Holdings Inc (EIGI) Q3 2019 Earnings Call Transcript". The Motley Fool. 2019-11-01. Retrieved 2020-04-15.
  22. ^ "Endurance International Group Announces Agreement to be Acquired by Clearlake Capital Group L.P. for $9.50 per Share". Clearlake.com (Press release). Clearlake Capital. 2020-11-02. Retrieved 2020-11-02.
  23. ^ "Web.com merges with competitor, becoming Newfold Digital". jaxdailyrecord.com; Jacksonville Daily Record. February 11, 2021.
  24. ^ "Clearlake Completes Acquisition of Endurance International Group and Strategic Investment Transactions With Web.com and Affiliates of Siris; Announces Formation of Newfold Digital" (Press release). Clearlake Capital Group; Siris Capital Group. PR Newswire. February 10, 2021.
  25. ^ "Clearlake And Siris Affiliates Re-Establish Digital Marketing Industry Pioneer Constant Contact As Standalone Company" (Press release). Clearlake Capital Group; Siris Capital Group. PR Newswire. 2021-02-10. Retrieved 2021-05-23.
  26. ^ "Thoughts on Endurance International Group (EIG) Hosting". linux-depot.com. November 15, 2013.
  27. ^ "Endurance International Group, Inc". Hosting-Reviews-Exposed.com. 6 September 2010.

External links[edit]

  • Official website for Newfold Technologies
    • Historical business data for Endurance International Group, Inc.:
    • SEC filings