The company structure of the Endurance International Group (EIG) is a mammoth one and incorporates over a hundred brands. Unlike competitors GoDaddy and Rackspace, EIG has strategically acquired the customer base of small companies to build its market share. Most of these companies still operate as autonomous organisations yet sharing the support resources and information services with their parent company.
An exercise in economies of scale, Endurance dominates the small business web hosting market through its many brands. In this guide, we take a look at the history of the company along with the brand names it operates along with the dates each business was acquired.
EIG: A History
Founded in 1997 and formerly known as BizLand, EIG is a specialist web hosting company that provides its services to small businesses. Founded by Hari Ravichandran, the company has over 5 million customers and employs almost 4000 staff across the group. Having studied Computer Engineering at Mississippi State University and Electrical Engineering at Stanford, Ravichandran is passionate about maintaining the core principles upon which Endurance was founded; empowering small businesses with the tools to connect with the customers and be visible, along with the big names, online.
Though the company is a big player in the web hosting industry, most customers have never heard of them. This is largely due to the fact that EIG does little to promote itself as a brand but rather acquires smaller web hosting companies and simply adds them to its stable.
In 2011, the company (owned by private equity firm, Accel KKR) was purchased by a joint equity venture between Goldman Sachs Capital Partners and Warburg Pincus for $975 million. This followed a series of high-profile acquisitions made by the company to further expand its empire. In fact, 2010 was a busy year for EIG with more than forty additional brands joining the ranks. Notably, A Small Orange, BlueDomino, Domain.com, JustHost, BlueHost and 2Slick.
Following the injection of extra capital by Sachs and Pincus, EIG continued its expansion in 2011 with another 9 brands including HostMonster and PipeDNS.
Popular brand, HostGator, was added to the stock in 2012 along with HostNine and Nexx; just three new companies. HostGator was a particularly big name to add to the stock, as a household US name, and cost the company $225 million.
Endurance listed on the NASDAQ in October 2013 selling shares at 2.1 million shares at $12 each and raising $252 million. The company’s share price peaked in April 2015 at $22.80 and are currently valued at $8.00.
With consolidation the focus, the next few years saw only a few small additions to the family including the high-profile acquisition of Indian company, Directi, in 2014, for $109.8 million. This strategic purchase increased EIG’s market share across important markets in China, Russia, Turkey and India as well as the U.S.
Two strategic but important purchases the following year increased the company’s customer base by almost 100,000 users when Verio and Site5 were brought under the EIG umbrella.
Before 2015 was out, EIG purchased the online marketing company, Constant Contact for $1.1 billion and added a further 72,000 users when they acquired the assets of Ecommerce LLC, cherry picking the subscribers of Cloud by IX, Host Excellence and IX Web Hosting.
At the time of going to print, the Endurance Group (with all its brands) is estimated to be worth just shy of $1 billion.
EIG: Brands and Companies
Though all of the EIG companies share the same parent, each of these hosting companies runs its own brand distinctly separately to any of its stablemates. This is partly the reason for EIG’s dominance and success; in allowing each brand to continue building and supporting its niche client base, EIG avoid becoming known in the market as a big, homogenised, faceless corporate entity. Instead, the company enjoys the benefits of the small business loyalty to other small businesses, despite the fact that they belong to a billion-dollar enterprise.
|Brand Name||Date Acquired|
|A Small Orange||2010|
|Berry Information Systems L.L.C.||2010|
|Cloud by IX||2015|
|Directi Web Technologies||2014|
|Dollar 2 Host||2010|
|IX Web Hosting||2015|
|World Wide Web Hosting||Unknown|