Vector Capital has agreed to sell Register.com, a provider of Web design and domain name registration services, to Web.com (Nasdaq: WWWW) . No financial terms were disclosed for the deal, which is expected to close sometime next quarter. Vector took Register.com private in 2005.
Vector Capital, a leading global private equity firm specializing in the technology sector, announced an agreement yesterday under which Web.com will acquire Vector portfolio company Register.com. The transaction is expected to close in the third quarter, subject to customary closing conditions.
Register.com is a leading provider of global domain name registration and complementary website design and management services. The acquisition by Web.com will create one of the largest online marketing and web services companies serving small businesses.
In November 2005, Vector Capital partnered with the Register.com management team to take the company private. As a private company, Register.com was able to focus on building long-term value for the business by divesting a non-strategic division, creating a new growth division, enhancing customer service capabilities and broadening product offerings to better serve customer needs. The $135 million sale of Register.com to Web.com demonstrates the continued success of Vector’s strategy of funding the growth of established technology businesses.
Commenting on the transaction, Larry Kutscher, CEO of Register.com, said: “Since 2005, Vector has been a dedicated, hands-on partner working with our team to grow our business, maximize our operating efficiency and helping us become a preferred provider to small business customers. This announcement is the next step in the process of positive growth that we have achieved with Vector. Register.com’s acquisition by Web.com will create an industry leader with the scale and breadth to further support small business customers in maximizing their presence on the web.”
Amish Mehta, Partner at Vector Capital, agreed: “Register.com is the most recent example in Vector’s long history of partnering with management to realize significant value by transforming and growing technology companies. This is an exciting development for all stakeholders, including customers, Web.com shareholders, management, and employees. In addition, the sale of Register.com combined with the proceeds received from 2006 and 2007 recapitalizations of the company creates a great outcome for Vector’s investors.”
About Vector Capital
Vector Capital is a leading global private equity firm specializing in spinouts, buyouts and recapitalizations of established technology businesses. Vector identifies and pursues these complex investments in both the private and public markets. Vector actively partners with management teams to devise and execute new financial and business strategies that materially improve the competitive standing of these businesses and enhance their value for employees, customers and shareholders. Among Vector’s notable investments are Aladdin Knowledge Systems, Certara, Corel Corporation, LANDesk, Precise Software, Printronix, Register.com, SafeNet, Savi Technology, WatchGuard Technologies, and WinZip. For more information, visit www.vectorcapital.com.
Register.com was founded in 1994 and has established a long-standing track record of serving the needs of its small business customers. Register.com’s flagship offering is its domain name services, which includes registration, search, renewal, premium, private, reinstatement and expiry protection. Register.com also provides a broad range of value-add services, such as business email, security, marketing, e-commerce and website creation, which represent approximately 40% of the company’s sales. Register.com has approximately 800,000 subscribers, and it has differentiated itself from the competition as a result of its high touch customer service and ability to deliver a comprehensive solution. For more information, visit www.register.com.
Web.com Group, Inc. (Nasdaq:WWWW) is a leading provider of online marketing for small businesses. Web.com meets the needs of small and medium-sized businesses anywhere along their lifecycle by offering a full range of online services and support, including website design, logo design, search engine optimization, search engine marketing and local sales leads, general contractor leads, franchise and homeowner association websites, shopping cart software, eCommerce website design, merchant services and call center services. For more information on the company, please visit http://www.web.com/ or call 1-800-GETSITE.