Shares of Web.com (WEB) rose over 13% after hours as Reuters.com reported the company “is in talks with private equity firms after receiving takeover approaches.”
The story went on to say “The buyout interest in Web.com comes as its sector has become increasingly crowded, with companies such as Wix.com Ltd, Weebly Inc and Squarespace seeking to gain market share from established players such as GoDaddy Inc.”
KKR & Co LP and Silver Lake Partners LP acquired GoDaddy.com (GDDY) in 2011 for $2.25 billion before taking it public.
Godaddy currently has a market cap of just under $7 billion dollars and finished the day at $41.42
Web.com had a market cap based on its closing price of $21.20 of just under $1 Billion dollars.
Shares of Web.com were up $2.90 in after hours trading at $24.10 based on the Reuters story that went on to say “Web.com has engaged in early-stage talks with private equity firms in response to approaches about a potential leveraged buyout, although the story says the company is not actively soliciting offers and there is no certainty that any deal will occur”.
“Web.com generated $710.5 million in revenue in 2016, compared to $543.5 million the year before. It reported adjusted earnings before interest, tax, depreciation and amortization in 2016 of $179.5 million, up from $155.8 million the year before.”
Web.com owns the domain name registrars NetworkSolutions.com and Register.com as well and the domain name auction and marketplace platform SnapNames.com as well as 1/2 of the domain auction platform and marketplace NameJet.com