January 3, 2006 — (WEB HOST INDUSTRY REVIEW) — Web hosting provider Interland (interland.com) announced last week that it had completed its acquisition of Web.com (web.com) and would re-brand under the acquired company’s name.
Atlanta-based Interland said in late November that it would acquire Web.com for $4.4 million in cash, restricted stock and assumed liabilities. The deal includes 9,000 hosting accounts, ownership of the Web.com domain and an accredited domain registrar.
The company says it will change its corporate name in the first half of 2006. Interland says the move is designed to align the company with its branded line of business for small and medium-sized businesses and consumers, which includes domain registration, hosting and Web marketing.
“Acquiring Web.com is an exciting step toward increasing our market penetration. Web.com is an under-utilized asset that we can unlock to reach its full potential,” says Jeff Stibel, president and CEO of Interland. “In addition to a tremendous branding opportunity, this acquisition adds revenues, significant direct navigation traffic, and an entrance into the consumer segment of the Web hosting market.”
The deal is expected to generate approximately $75,000 in monthly hosting revenues. Web.com CEO Will Pemble will join Interland as executive vice president, focusing on Web.com’s consumer and registrar business.
The deal comes as Interland appeared to be moving away from its strategy of growth by acquisition, and had begun trimming its business considerably. In May, it sold its Hostcentric shared hosting assets to Caird Corporation, and followed with the September sale of its dedicated hosting division to Peer 1 Network.
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