It has been announced that Site5, a popular web hosting provider, has been acquired by Endurance International Group (EIG) in a deal worth $23 million. The news was announced in EIG’s earnings report for the second quarter of the year, along with the acquisition of Verio, which is estimated to have cost another $13 million.
This deal represents an important acquisition for EIG, but pre-existing Site5 subscribers might have some concerns with regard to the future of their hosting plans. Today, we’ll take an in-depth look at the details of this deal and let you know what it means for everyone concerned.
Details of Site5 Purchase
The details of the deal were provided during a conference call in early August. During this call, EIG revealed that it could now boast of 4.4 million subscribers in total across all of its various brands. 86,000 of these subscribers have been added to the group’s books with the acquisition of Verio and Site5.
The prepared remarks in the conference call also gave us some idea of the company’s plans to integrate its new acquisitions with its existing services. We can expect integration of the back end systems to occur throughout the second half of 2015, but full integration of hosting servers might have to wait for later.
The reaction to this announcement has been mostly positive, but some sectors of public response were slightly negative. A forum thread was launched over on Webhostingtalk, a forum dedicated to web hosting discussion.
In this thread, the replies were mostly of a negative nature as EIG has rather unfairly developed something of a bad reputation when it comes to their purchases of smaller companies in the past. However, the group’s more recent dealings seem to be much better organized overall, so it is perhaps unjust to criticize the company on an acquisition that has only just been announced.
Why the EIG Takeover of Site5 Makes Sense
The CEO of Site5, Ben Welch-Bolen, has only good things to say about his dealings with EIG. Welch-Bolen formerly worked with HostGator, a company that was heavily criticized due to some teething problems experienced after its acquisition by EIG. However, Welch-Bolen insists that no company is perfect and that people should give Site5 and EIG a chance.
He commends the staff working with HostGator/EIG and believes that the company has a powerful dedication to learn from its mistakes and constantly strive to improve and offer better service for its clients. He is fully confident that HostGator/EIG will be able to seamlessly incorporated Site5 into their systems and offer a painless transition for existing users.
What the Move Means for Site5
Welch-Bolen also sought to reassure current Site5 customers by revealing that he and his team would continue to work with Site5 for at least another year. He said that business would continue running as normal for the foreseeable future and that he wouldn’t be moving on anytime soon.
This news should greatly help to assuage any fears or concerns that Site5 fans might be experienced at this moment, as Welch-Bolen will continue to ensure that his company provides a great level of service at all times and makes its clients happy in the weeks and months to come.
Some additional news was revealed that should also come as a great relief to Site5 subscribers: the company has no plans whatsoever to reduce its server locations. Having developed a reputation as a reliable provider thanks to a good variety of servers all across the globe, Site5 fans would surely have been disappointed to have seen the speed and reliability of their hosting plans reduced by the loss of certain servers.
Fortunately, this won’t be happening and the provider remains dedicated to offering the same great levels of service as always. The reasons behind this decision are obvious as the company’s success and reputation depend on the benefits it is able to offer.
Overall, this is a great acquisition by EIG, with Site5 being one of the most impressive young hosting providers out there. Site5 subscribers will surely benefit from the vast resources available to EIG and the company will surely improve in countless ways in the years to come. In the short-term, we can see that very little is going to change for pre-existing clients, so this deal shouldn’t set any alarm bells ringing or lead to any form of concern for users of the provider.
There may be a few initial problems as the services are integrated into the larger EIG network, but the process should be relatively seamless. Subscribers are recommend to prepare backups of their sites for security reasons at all times, and this is especially important at a time like this.
Therefore, if you are an existing subscriber with Site5, it would be sensible to make some backups in the unlikely event that you fall victim to any of the issues that might arise.