Endurance International Acquires Directi For USD 100-110 Million
Directi, India’s largest domain registrar has reportedly been acquired by US based Endurance International group. The latter owns domain.com and Hostgator. Endurance plans to raise USD 400 million through Nasdaq IPO and will spend upto USD 110 million to buy Directi.
Here is the excerpt from S-1 filing that Endurance has filed with US Securities and Exchange Commission:
In August 2013, we entered into a master share purchase agreement to acquire all of the outstanding capital stock of Directi from Directi Holdings, the seller, for an amount we estimate will be between $100 million and $110 million in cash or, at the election of the seller, a combination of cash and shares of our common stock, subject to the satisfaction or waiver of specified customary closing conditions and the achievement of specified financial targets. Directi provides web presence solutions to SMBs in various countries, including India, the United States, Turkey, China, Russia, and Indonesia. We expect to close the acquisition during the fourth quarter of 2013. In connection with entering into the agreement, we paid $5 million to Directi Holdings, which will be credited against the purchase price and will be refunded if the acquisition does not close for specified reasons.
So, Directi has entered the share purchase agreement, but the deal cannot be said to be fully done and finalized as can be seen from the last line. There is a possibility (though slim) that this deal may not go through.
Directi was established by brothers Bhavin and Divyank Turakhia in 1998 when they were still in their teens. Directi’s product portfolio of nearly 25 products pre-dominantly revolves around domain registrations, web hosting and mass-market consumer web products. According to some estimates, Directi manages close to 3 million customers and over 10 million domains across the globe.
Interestingly, Directi’s company website puts its valuation at USD 300 million plus, so it is very much possible that Endurance may have acquired their domain registration and hosting business, while their other web products like Media.net may not be part of it (At this point, it is just a guess work, as no details are clear as yet)
We have got in touch with Bhavin Turakhia on email, but he had not responded till this article was published.
[source | Via]