Early last week rumours began circulating that Endurance International Group (EIG), already owners of several big name web hosting companies, was preparing to acquire HostGator. On Thursday (June 28, 2012) HostGator CEO Brent Oxley confirmed those rumours, saying EIG is currently undergoing a fund raising effort worth $225 million. It’s not clear whether that is the final acquisition price, but it may very well be. Once the acquisition is complete it will add an additional 400,000 customers and 12,000 servers to the EIG family.
Rumours of the acquisition originally began circulating after an e-mail from Oxley to company employees found its way to the public arena. In that e-mail Oxley intimated of the pending acquisition and lamented some of his failures during his years at HostGator’s helm. Yet at the same time he tried to shore up any doubt among company employees that their jobs were in danger.
“Bluehost was at 280 employees when the sale closed and they have 450 today,” Oxley wrote, referring to EIG’s purchase of of competitor BlueHost in 2010. “Their management team has stayed the same and the culture has stayed the same. Now, the Bluehost culture, employees, and philosophy have taken hold to become the new status quo of EIG.”
If all goes well the acquisition should be under way sometime within the next month. There aren’t expected to be any objections that would forestall the process.
As for Oxley, he will move on to other things including real estate management. His Oxley Leasing company owns the buildings now occupied by Host Gator. He has not said whether or not he will completely leave the IT world behind once he vacates the HostGator CEO chair.
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