Web.com to acquire domain company Network Solutions for $560.9 million

Online internet services provider Web.com Group Inc yesterday said that it would acquire privately-held marketing and domain company Network Solutions, in a $560.9 million cash and stock deal.

"This transaction represents a unique opportunity to dramatically expand our scale, add further momentum to Web.com's already improving top line growth, and further expand our market share as the nationally recognised provider of online marketing solutions specifically tailored to small and medium-sized businesses," said Web.com's chief executive David Brown.

Virginia-based Network Solutions was founded in 1979 as an engineering firm but became one of the main registries for Web sites during the dot-com era.

After going public and been acquired several times, it was acquired in 2007 by private-equity firm General Atlantic for a reported $800 million.

Network first operated the domain name registry under a sub-contract with the US Defense Information Systems Agency and currently manages more than 7 million domains, over 1.5 million e-mailboxes, and 430,000 Web sites.

Over 65 per cent of Fortune 100 companies, along with individuals and small and medium businesses use its online Netsol computer network directory, consulting, and instructional products and services.