PE-backed Endurance International to buy India's Directi

Endurance announced the acquisition, which is expected to close in the last quarter of 2013, when it filed to raise up to $400 million through a NASDAQ IPO. A portion of the proceeds will be used to cover the acquisition costs.

Directi Web Technology provides web presence services to small and medium-sized enterprises (SMEs) in India, the US, Turkey, China, Russia and Indonesia.

Endurance has also struck agreements with affiliates of the seller, Directi Holdings, to participate in the auction of domain extensions and domain monetization activities. This will involve further cash payments of approximately $62 million.

Directi Web Technology's assets include Radix Registry, a domain name registry operator; Logic Boxes, a back-end service provider for registrars; Skenzo, a domain name monetization engine; and BigRock.com, which provides services such as domain registration, email hosing and web hosting. It isn't clear which components will be included in the Endurance deal.

Directi was founded in 1998 by two brothers, Bhavin and Diyank Turakhia. The business is now worth more than $350 million, employees over 1,000 people, offers 25-plus web products, and serves more than one million customers.

Endurance runs hosting sites Hostgator and Bluehost, as well as registrar domains Domains.com and Dotser. It claims to have around 3.2 million subscribers. The company reported revenue of $292.2 million in 2012, representing 82% compound annual growth over the last three years. Net losses increased from $44.3 million to $132.8 million over the period.

Warburg and Goldman paid Accel-KKR about $975 million for its majority stake in Endurance in late 2011.

 

 

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Buyouts
• South Asia
• North America
• Technology
• Goldman Sachs
• Warburg Pincus Asia
• buyout
• M&A
• India
• TMT
• USA