Interland, a web-hosting service for small and medium-sized businesses, has completed its asset acquisition from Web Internet, LLC (Web.com) and Web Service Company Inc. Interland will change its name to Web.com Inc. in 2006. eBay's acquisitions of Kurant Technologies assets and subsequent introduction of ProStores makes it a competitor in the web-hosting space.
Interland acquired assets including the domain name Web.com, web-hosting business comprised of approximately 9,000 subscribers, accredited registrar business and trademark rights. It paid approximately $4.8 million in cash, restricted stock and assumed liabilities. The name change is a strategic move designed to clearly align the company with its branded line of business: offering web services (including websites, web hosting, and web marketing) for small and medium-sized businesses and consumers.
The Web.com acquisition is anticipated to bring approximately $75K in monthly hosting revenues, according to Interland, as well as generating one-time, non-recurring revenues not included in the recurring revenue total, such as domain registrations, domain privacy, URL forwarding and advertising and commerce revenues.
Interland intends to integrate Web.com's offerings and customers within Interland's infrastructure to maximize efficiencies and cost savings. Current Web.com CEO, Will Pemble, will join Interland as an Executive Vice President and will focus on building Web.com's consumer and registrar business.
Interland currently offers services such as standardized web hosting, ecommerce, application hosting, website development, online marketing and optimization tools.
Of the aquisition, Interland President and CEO Jeff Stibel said, "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. 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.”
http://www.interland.com
