Endurance International Group
 |
|
| Traded as | NASDAQ: EIGI |
|---|---|
| Industry | Internet hosting services |
| Predecessor | BizLand |
| Founded | 1997 |
| Founder | Hari Ravichandran |
| Headquarters | Burlington, Massachusetts, United States |
|
Number of locations
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Worldwide |
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Key people
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Hari Ravichandran |
| Services | Web hosting, domain registration, SEO, email marketing |
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Number of employees
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Over 2,500 (2016) |
| Website | www |
Endurance International Group (EIG), formerly BizLand, is a web hosting company. The company was founded in 1997, and is headquartered in Burlington, Massachusetts. It achieved its size by acquiring a large number of smaller companies, which it continues to operate under the original brand names.
In 2011, Endurance was bought from Accel-KKR by Warburg Pincus and GS Capital Partners, for around $975 million. In September 2013, the company announced plans to raise $400 million in an IPO. The company announced it would list on the NASDAQ under the ticker symbol EIGI. 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.
In a 2015 investor earnings conference call, the company reported having 4.2 million worldwide users.
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 in acquiring assets to add to their corporate portfolio. The concept was to roll up small ISPs into one large national ISP and achieve economies of scale. Endurance is acquiring hosting companies domestically and internationally.
Blake Cunneen, Endurance's senior vice president of corporate development has stated:
"Investing in mergers and acquisitions is a very accretive use of free cash flow and going forward we'll continue to do so. We don't have any deals we're announcing. But we told the Street to expect M&A growth to continue."
The company made four buys in 2014. The biggest being a $109.8 million cash and stock deal for the web presence business of Directi from Indian-based Directi Web Technologies. Directi provides services in various countries, including India, the U.S., Turkey, China, Russia and Indonesia.
In March 2015, the company announced an investment in Netherlands-based technology startup AppMachine, acquiring 40% of the company.
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.
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