Web.com Group Inc. Stock Soars on Buyout News

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Web.com Group Inc. (NASDAQ:WEB) has agreed to be the subject of a buyout by an affiliate of Siris Capital Group, LLC in an all-cash transaction.

Web.com Group Inc.The deal is reportedly valued at around $2 billion and the terms of the agreement include that an affiliate of Siris will acquire all of the outstanding common stock of Web.com for $25 per share in cash. The move has been unanimously approved by the members of Web.com’s board of directors.

The purchase price is about a 30% premium over Web.com’s 90-day volume-weighted average price ended on June 19, 2018. The deal includes an option that allows the company to solicit alternative acquisition proposals from third parties during a “go-shop” period from the date of the agreement until August 5, 2018.

This means that there is no guarantee that this process will lead to a superior proposal, while the agreement also gives Siris a customary right to match with a superior proposal. “Web.com does not intend to disclose developments with respect to the solicitation process unless and until the company determines such disclosure is appropriate,” the press release reads.

“The proposed transaction is expected to close in the fourth quarter of 2018 and is subject to approval by Web.com’s shareholders, along with the satisfaction of customary closing conditions and antitrust regulatory approvals, as necessary.”

WEB shares were up more than 11.8% during regular trading hours on the news.


Article printed from InvestorPlace Media, https://investorplace.com/2018/06/web-com-group-inc-web/.

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