Private fairness agency Clearlake Capital Group has acquired Endurance International Group Holdings and its portfolio of small enterprise cloud functions — together with electronic mail advertising software program supplier Constant Contact, together with Web internet hosting corporations Bluehost, HostGator and Domain.com.
This is M&A deal 445 that ChannelE2E has coated to this point in 2020. See the total M&A deal record right here.
The buyout is valued at $9.50 per share or roughly $3 billion. Endurance’s inventory ($EIGI) rose almost 62 % on the information. As a part of the buyout announcement, Endurance additionally disclosed monetary outcomes for the third quarter of 2020:
- Endurance’s income was $278.4 million, up 3 % in comparison with $270.4 million in Q3 of 2019.
- Net earnings was $6.7 million, in comparison with $7.8 million in Q3 of 2019.
The Endurance firm portfolio contains:
- Constant Contact for small enterprise electronic mail advertising software program;
- Bluehost, one of many world’s 20 largest net hosts. The firm manages over 2 million domains — together with WordPress web sites.
- HostGator, one other internet hosting supplier. The firm presents shared, reseller, digital personal server and devoted internet hosting choices.
- Domain.com, yet one more internet hosting supplier that manages domains.
Clearlake Capital Group has intensive expertise within the IT service administration and SMB know-how markets. The personal fairness agency’s funding portfolio contains communication and managed service supplier (MSP) ConvergeOne, IT administration software program supplier Ivanti, community analytics supplier Mycom OSI, and MSP Pomeroy.
Clearlake Capital Acquires Endurance: Executive Perspectives
In a ready assertion in regards to the deal, Endurance President and CEO Jeff Fox mentioned:
“We are pleased with this agreement which recognizes the value of our multi-brand scale platform. We are proud to serve approximately 5 million customers worldwide as a provider of solutions that help small and medium businesses succeed online and enhance the value of their customer relationships.”
Added Behdad Eghbali, co-founder and managing associate, and James Pade, Partner at Clearlake:
“The Endurance family of brands has built a leading position in the large and growing cloud hosting, domain, and digital marketing software space. We look forward to partnering with this talented team and supporting its long-term strategic plan to drive growth through its focus on customer value. We are excited to leverage Clearlake’s O.P.S.® framework to help the Company fuel growth both organically and through acquisitions.”
Private Equity Buying Small Business-focused Technology Companies
The Clearlake-Endurance deal reinforces personal fairness’s rising focus within the small enterprise know-how market, the place SMBs are in search of cloud-based instruments to automate gross sales, advertising, IT operations and extra. More offers are absolutely on the best way, together with potential Accel-KKR acquisitions in and across the SMB discipline providers administration software program business.
Meanwhile, personal fairness corporations comparable to Thoma Bravo, Vista Equity Partners and Summit Partners stay centered on cloud and software program firms that assist MSPs to assist small enterprise clients.