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HostGator Owner Endurance Completes Acquisition of Directi

directi_enduranceEndurance International Group has announced that it has acquired Directi, an Indian domain name registrar, and according to its SEC filing it paid $100-$110 million in cash or a mix of cash and stock. Directi CEO Bhavin Turakhia has agreed to be “closely involved in the integration of the two companies” according to Endurance, but it is not clear what position Turakhia and existing board members will have in the company post takeover.

As part of the acquisition, Endurance will take over several of Directi’s businesses such as B2B brands domain reseller service Reseller club, registry solution Logicboxes and webhosting.info as well as domain registration and hosting property BigRock. It needs to be noted that contextual ad product Media.net, educational initiative Codechef, traffic monetization programme Skenzo and messaging app talk.to owned by Directi, have not been included in the deal.

Directi’s marketshare: In an interview with MediaNama in July 2013, Directi had claimed that it has 47% marketshare in India, powering 1,653,187 of 3,507,100 domains. Turakhia had also said that company’s highest revenue came from domain names and hosting which target mass market and bring mass volume. He had also claimed that Directi had retention rate upward of 85% .

Endurance’s financials: Endurance International reported revenue of $87.8 million in 2010, $190.3 million in 2011 and $292.2 million in 2012. In the quarter ended September 30, 2013 the company announced revenue of $132.9 million and Net Loss of $27.0 million, compared to $83.4 million for the third quarter of 2012 and Net Loss of $27.7 million. The company clams it added more than 70,000 new users during the quarter increasing the tally to 217,000 for the year.

The company completed its initial public offering in October 2013, raising gross proceeds of $252.6 million. On November 25, 2013, Endurance completed a refinancing of its bank debt. Using proceeds from its IPO, cash on hand and incremental first lien facilities, the company repaid its $315 million second lien term loan and secured a lower effective interest rate. Following the transaction, the company’s outstanding bank debt is $1,050 million. As compared with the bifurcated term loan facility in place at September 30, 2013, the new single tranche of first lien debt is expected to lower the company’s annualized term loan interest expense by over$35 million, based on the current loan balance and new interest rates.

Endurance International runs hosting site such as Hostgator.com, Bluehost, HostMonster, JustHost and domain registrar such as Domains.com and Dotser.

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© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ