Endurance Int'l Jumps on Deal to Be Bought by PE Firm Clearlake

Endurance International rose after the cloud-based digital-marketing platform agreed to be acquired by PE firm Clearlake for $9.50 a share.
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Endurance International rose after the cloud-based digital-marketing platform agreed to be acquired by private-equity firm Clearlake for $9.50 a share cash, or about $3 billion including debt.

Endurance stock recently traded at $9.38, up 61%. The shares have doubled in 2020 to date.

The deal price is a 79% premium over Endurance's unaffected share price of $5.30 as of Sept. 25, the last trading day before media reports speculated about a transaction, Endurance said. And it is 64% higher than Friday's closing price of $5.81.

Endurance, Burlington, Mass., focuses on small- and medium-sized businesses.  Chief Executive Jeff Fox said in a statement that the company serves about 5 million customers worldwide.

“The Endurance family of brands has built a leading position in the large and growing cloud hosting, domain, and digital marketing software space,” Managing Partner Behdad Eghbali at Clearlake, Santa Monica, Calif., said. 

Clearlake expects to grow Endurance both organically and through acquisitions, he said.

The parties expect the deal to close in the first quarter, subject to conditions including a vote of Endurance shareholders and clearance by antitrust regulators.

Affiliates of Warburg Pincus and Goldman Sachs Private Equity Partners have agreed to vote about 36% of Endurance shares for the deal, the company said.

Endurance also reported third-quarter earnings on Monday. 

Profit totaled $6.7 million, or 5 cents per share, in the latest quarter, compared with $7.8 million, or 5 cents, in the year-earlier quarter. 

Revenue totaled $278.4 million, up 3% from $270.4 million in the third quarter of 2019, excluding SinglePlatform, which Endurance sold in December 2019. Including SinglePlatform, the year-ago third-quarter revenue was $277.2 million.