Network Solutions Soon To Get Acquired By Web.com

Hi Friends!

The competition has been growing really tough. And it is Web.com who has proved it evidently through an agreement it has signed for acquisition of Network Solutions, a private domain name registrar. The move has been made to take advantage of the shift small and medium sized companies have taken, from conventional to online marketing modules.

Big DEAL, Big AMOUNT

 

Web.com, a company in Florida declared that it will be paying an hefty amount of US $ 405 million to Network Solutions in cash. The company would issue nearly 18 million shares as common stock and refinance the Network Solutions recent debt.

Web.com and Network Solutions, both the companies are domain name registrars; however, they have extended their businesses with complementary services like ecommerce and online marketing, hitting small and medium sized organizations.

Web.com Profitable Anticipations

According to what Web.com shared in its company blog post, Network Solutions is a international business giant when it comes to domain name registration. Besides this, it is dealing in website design as well as management services with focus on SMB online marketing. The reason that company is excited about the acquisition is because of the following reasons:

1. It will give an opportunity to Web.com to add gear to its business and grow exponentially.

2. Web.com will be able to position itself as a nationally acclaimed go-to-provider for SMBs.

3. The company will be able to make more investments in verdant products or services like a newer Facebook application.

Seems like Web.com has its strategy planned and business intelligence is absolutely clear.

When coupled together, these two companies have 9 million domains which are under management and 3 million paying subscribers followed by 1900 employees, calculated in June. Jointly, the two organizations will stand in competition with GoDaddy.com that holds across 48 million domain names with loyal 9 million customers database globally.

The approach is good and so will the results, hopefully!

The transaction both companies are working on is expected to get completed by the end of year 2011. And importantly, a big shareholder of Network Solutions, General Atlantic and some other Network Solutions shareholders will expect to own Web.com's upto 37%.

I'll keep you posted with the recent updates on this expected deal. Stay tuned for more.

Sited in Delhi, LeXolution IT Services is a renowned web design and development company. Apart from website designing we specializing in Server Set Up & Management services, the company has successfully accomplished big projects for globally based clients.