Endurance International Group Holdings Inc [NASDAQ:EIGI] was a top performer yesterday and closed the day higher by 61.96%. This followed the company’s announcement that it would be acquired by Clearlake L.P at a price of $9.50 a share in a deal that is valued at $3 billion. The deal has been approved by the board and will see the company bought at a 79% premium over its closing price on the previous trading day.
Commenting on the deal, the company CEO Jeff Fox stated that, they were happy that the buyout agreement did recognize the company’s multi-brand scale platform value. He added that the company was happy to continue serving its over 5 million customers across the world, by giving solutions that help SMEs succeed when doing business online to drive the value of their customer relationships.
According to Behdad Eghbali, the managing partner of Clearlake, Endurance is a brand that has risen to become a top player in the high growth cloud hosting, and digital marketing, and domain markets. He added that with the acquisition, the company was looking forward to teaming up with Endurance’s highly talented team to drive its long-term strategic value and grow the company’s long term value.
The deal between the two companies is expected to come to fruition in Q1 of 2021, subject to its approval by Endurance stockholders, and meeting the necessary laws and regulations on mergers and acquisitions. Clearlake has announced that the company will finance the buyout deal with a mix of equity and debt.
Besides the buyout news, the company also released strong Q3 results. The company announced that revenues in Q3 rose by 3% to hit $278.4 million compared to revenues of $270.4 million in a similar quarter in 2019. The company’s cash flows from operations also increased from $41 million in Q3 of 2019 to $54.6 million in 2020 representing an increase of 33%.
The number of subscribers to the company’s products has been on the rise too. As of September 30th, 2020, the company’s subscribers stood at 4.965 billion compared to 4.766 million at the end of Q3 in 2019. Nonetheless, the company’s net income dropped slightly in Q3 of 2020 compared to a similar quarter in 2019. In 2019, the net income stood at $7.8 million, while in Q3 of 2020, it stands at $7.8 million.
About Endurance International Group Holdings Inc
Endurance International Group Holdings Inc is a cloud-based solutions provider with a focus on SMEs. It is based in Burlington, Massachusetts.