Endurance completes acquisition of Directi’s web business
29 Jan 2014
Nasdaq-listed Endurance International Group, which owns online sites such as Domain.com, iPage and HostGator.com among others, has completed the acquisition of the web business of Directi, which operates a domain registration business.
The acquisition of Directi includes B2B brands ResellerClub, LogicBoxes and webhosting.info as well as successful web presence brand BigRock.
The financial terms of the acquisition were not disclosed.
''We believe this acquisition represents an excellent opportunity for Endurance to expand its footprint and positions us for further growth,'' said Endurance founder and CEO Hari Ravichandran.
''Directi has managed to build a blue chip organisation without losing their entrepreneurial spirit. And in fact, the Endurance team intends to learn from Directi's approach to developing new markets,'' Ravichandran said.
Endurance International Group had signed an agreement to acquire Directi Web Technology for about $100-110 million in September last year. Under the agreement, Endurance International would pay in cash or a combination of cash and shares, according to a filing with the US market regulator Securities and Exchange Commission.
The acquisition is expected to close by the fourth quarter of 2013, it said.
Endurance International, a company controlled by investment firms Warburg Pincus and Goldman Sachs, has already paid $5 million to Directi Holdings (holding company for Directi Web Technology). This would be credited against the acquisition or refunded if the deal fails to go through.
The Mumbai-based Directi is a Web products development company, founded by Bhavin Turakhia, who now heads the company as its chairman and CEO. Turakhia, along with his brother Diyank, had set up the company in 1998 with an investment of Rs 25,000.
Endurance is also planning to raise about $400 million through an initial public offering. The company has also filed the initial papers with the US market regulator.
The proceeds from IPO would be used to close the ''proposed acquisition of Directi'', apart from repaying debt, the Massachusetts-headquartered company said in the filing.
Endurance was founded in 1997 by Indian-origin Hari Ravichandran.
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