Web Hosting Company Interland Aquires Web.com

HostReview.com
Wednesday, January 4, 2006; 11:51 AM

Interland (www.interland.com) announced that it has completed its asset acquisition from Web Internet, LLC (Web.com) and Web Service Company Inc. Included in the assets are the domain name Web.com, web hosting business comprised of approximately 9,000 subscribers, accredited registrar business and trademark rights. Interland paid approximately $4.8 million in cash, restricted stock and assumed liabilities.

Roughly half of the consideration consists of assumed liabilities, including debt in the form of a low-interest 3% loan payable over three years.

As a result of this acquisition, Interland intends to change its corporate name to Web.com, Inc. The formal name change is expected to take place in the first half of 2006.

"Acquiring Web.com is an exciting step toward increasing our market penetration. Web.com is an under-utilized asset that we can unlock to reach its full potential," stated Jeff Stibel, President and CEO, Interland.

The Web.com acquisition is anticipated to bring approximately $75K in monthly hosting revenues. The Web.com assets also generate one-time, non-recurring revenues which are not included in the recurring revenue total, such as domain registrations, domain privacy, URL forwarding and advertising and commerce revenues.

Interland intends to integrate Web.com's offerings and customers within Interland's infrastructure to maximize efficiencies and cost savings. Current Web.com CEO, Will Pemble, will join Interland as an Executive Vice President and will focus on building Web.com's consumer and registrar business.