November 30, 2005 — (WEB HOST INDUSTRY REVIEW) — Web hosting provider Interland (interland.com) announced on Wednesday that it had acquired Web hosting firm 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.
“This strategic acquisition gives us a valuable marketing and positioning vehicle for our services and brings tremendous visibility and direct navigation traffic which is expected to drive organic growth moving forward,” says Jeff Stibel, president and CEO of Interland. “To many individuals, the domain Web.com is synonymous with the Internet and Web sites.”
Interland says the deal, expected to close by the end of the year, will add $900,000 to its annual hosting revenues. Web.com’s customer base will be integrated within Interland’s infrastructure and the company’s CEO Will Pemble will join Interland as an executive vice president.
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, which was followed by the September sale of its dedicated hosting division to Peer 1 Network.
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