Endurance International Group Explained

Endurance International Group, Inc.
Traded As:NASDAQ: (2013-2021)
Industry:Internet hosting services
Services:Web hosting, domain registration, SEO, email marketing
Predecessor:BizLand
Parent:Clearlake Capital
Location City:Jacksonville, Florida
Location Country:US
Locations:Worldwide
Num Employees:Over 2,500 (2016)

Endurance International Group (EIG), previously named BizLand, now part of Newfold Digital, 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, with a global market share of 3.5% according to W3Techs.[2] 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.[3] [4]

History

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.[11] The concept was to roll up small ISPs into one large ISP and achieve economies of scale. Endurance acquired hosting companies domestically and internationally.

In 2014, Endurance bought four Directi owned companies – BigRock, LogicBoxes, ResellerClub, and Webhosting.info – for $160 million.[12] [13]

In March 2015, the company announced an investment in Netherlands-based technology startup AppMachine, acquiring 40% of the company.[14] [15] 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.[16] [17] In November 2015,[18] the company acquired Constant Contact, and days later laid off 15% of their workforce.[19] Also in November 2015, EIG acquired the assets of Ecommerce, LLC for $28 million.[20]

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.[21]

Endurance acquired Ecomdash in October 2019 for $9.6 million in cash, and placed it under the Constant Contact group.[22] [23] [24]

In November 2020, Clearlake Capital Group announced that it would acquire Endurance International Group for around $3 billion.[25] 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.[26]

Clearlake also spun off the Constant Contact division of Endurance into a separate joint venture between Clearlake and Siris.[27]

In November 2022, Newfold Digital "signed a definitive agreement to purchase MarkMonitor™, an industry-leading enterprise-level provider of domain management solutions"[28] from Clarivate. MarkMonitor provides brand protection, anti-piracy, and domain-name registration services for a variety of Big Tech industry giants and other companies.[29] [30]

Subsidiary brands

The company has owned and operated numerous hosting businesses, with shared support information and support agents. Subsidiaries and brands include:[31] [32]

External links

Notes and References

  1. News: The Endurance International Group, Inc.. https://web.archive.org/web/20100724155431/http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=112165. dead. July 24, 2010. . April 12, 2011.
  2. Web site: Usage statistics of Newfold Digital Group as web hosting provider. w3techs.com. en. 2024-07-22.
  3. Web site: Endurance International Group (EIG) – The World's Largest Web Hosting Company You've Probably Never Heard Of. hostingkingdom.com. 24 November 2014.
  4. Web site: Rich. Miller. IPOWER, Endurance International Announce Merger. NetCraft.com. May 9, 2007.
  5. News: Demos. Telis. Web Hoster Endurance International Preps for IPO. Wall Street Journal . 15 March 2013 . WSJ. 17 April 2014.
  6. Web site: Form S-1. www.sec.gov.
  7. Web site: Endurance International Group Holdings, Inc. Common Stock (EIGI). NASDAQ.com.
  8. Web site: ENDURANCE INTERNATIONAL GROUP HOLDINGS, INC. (EIGI) IPO. NASDAQ.com.
  9. Web site: Endurance Web hoster Endurance raises $252 million in IPO . Hiawatha . Bray . The Boston Globe. October 26, 2013. February 9, 2023.
  10. Web site: Verio Secures Funding for Acquisitions . internetnews.com.
  11. Web site: Endurance, GoDaddy, Wix, And Web.com: Choosing Growth Or Leverage. seekingalpha.com. 27 March 2015.
  12. News: Arora . Varun . 26 August 2016 . We will set up family office soon, says Bhavin Turakhia . VCCircle.
  13. News: Modgil . Shweta . 10 January 2017 . It's Our Moral Obligation To Make An Impact Directly Proportional To Our Potential: Bhavin Turakhia, Co-Founder, Directi Group . 24 March 2017 . Inc42.com.
  14. Web site: AppMachine Partners Up With Endurance International Group. AppMachine.com .
  15. Web site: AppMachine raises $15.2 million, partners with Endurance International Group. StartupJuncture .
  16. Web site: Endurance International Group Reports 2015 Second Quarter Results. Aug 4, 2015 . marketwatch.com. en-US . 2016-05-18.
  17. Web site: EIG's Acquisition of Verio and Site5 Nets 86,000 New Subscribers. Web Host Industry Review. en-US. 2016-03-29.
  18. Web site: Email marketing giant Constant Contact acquired for $1 billion. VentureBeat. 2 November 2015. 2015-11-02.
  19. Web site: Constant Contact Cuts 15 Percent of Staff After Its Acquisition. Xconomy.com .
  20. EIG Reports 2015 Fourth Quarter and Full Year Results. 2016-10-07.
  21. News: Indian-origin executive settles charges with SEC, another charged for making false claims . . 25 August 2018 . 2019-07-31.
  22. Web site: Endurance International to acquire Ecomdash for $9.6M . Gaurav . Batavia . September 10, 2019. Seeking Alpha.
  23. Endurance International Group Reports 2019 Fourth Quarter and Full Year Results. Endurance International Group Holdings. 2020-02-06. GlobeNewswire News Room. 2020-04-15.
  24. Web site: Endurance International Group Holdings Inc (EIGI) Q3 2019 Earnings Call Transcript. 2019-11-01. . en. 2020-04-15.
  25. 2020-11-02 . Endurance International Group Announces Agreement to be Acquired by Clearlake Capital Group L.P. for $9.50 per Share . 2020-11-02. Clearlake.com. Clearlake Capital. en-US.
  26. Web site: Web.com merges with competitor, becoming Newfold Digital . February 11, 2021 . .
  27. Clearlake And Siris Affiliates Re-Establish Digital Marketing Industry Pioneer Constant Contact As Standalone Company. 2021-02-10. Clearlake Capital Group; Siris Capital Group. PR Newswire. 2021-05-23.
  28. News: Newfold Digital Signs Agreement to Acquire MarkMonitor from Clarivate. Cassis. Nicole. November 1, 2022. January 29, 2024. Newfold Digital.
  29. News: Thomson Reuters snaps up online brand protection giant MarkMonitor. Robin. Wauters. July 26, 2012. December 8, 2012. The Next Web.
  30. News: Domain Names registered with abuse complaint email address "abusecomplaints@markmonitor.com". OTX. AlienVault. January 29, 2024. January 29, 2024. OTX AlienVault.
  31. Web site: Thoughts on Endurance International Group (EIG) Hosting . November 15, 2013. linux-depot.com.
  32. Web site: Endurance International Group, Inc. Hosting-Reviews-Exposed.com. 6 September 2010 .

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