HostGator, one of the leading Webhosting company in the world with the tag line “we eat up the competition” has been eaten by the competition.
Rumors about the Endurance International Group (EIG) trying to buy the Webhosting Giant HostGator come to end when the mail sent by Hostgator CEO Brent Oxley become public on WebhostingTalk yesterday confirmed the Rumors. According to the reports EIG has offered $225 Million to Brent Oxley which he has accepted. This acquisition is the largest ever acquisition done by the EIG till date.
Brent Oxley mentioned following reasons to sell the company in his mail sent to HostGator employees (Pastebin):
* I want to travel the world before my wife and I have kids.
* I’ve been doing HostGator since I was 18, and I’m looking for a new challenge.
* I’m extremely worried about the financial path our country is headed down.
* Taxes will be going up significantly in 2013, making it more difficult for business owners.
* I’ve failed more times than I can count to launch software that would allow us to compete as a registrar.
* We have tried and failed to develop a billing system that has automated and can integrate with our key systems such as chat, phone, affiliates, and tickets. I think we are finally on the right track, but unfortunately I no longer have the patience to wait for it to all come together. Thankfully EIG has tackled a lot of these challenges already.
* I have practically 100% of my chips in HostGator and if something should ever happen to the company, I’d more than likely be bankrupt in a matter of a few months.
The acquisition process will get complete in next couple of weeks but HostGator customers doesn’t seems to be happy with this acquisition (you can check WebHostingTalk Thread).