Web.com announced on Wednesday that it is going to acquire Herndon based Network Solutions for an amount of $560 million in both equity stake and cash with the view of coming up as the largest provider of web services and domain names for small businesses.
According to market analysts, the move by the company is primarily fuelled by a growing trend amongst small businesses to embrace online marketing in the recent months.
Network Solutions and Web.com are both domain name registers. However, the companies also have complementary businesses in online marketing, web services, e-commerce etc, mostly target at small and medium businesses.
“You combine those two companies, [and] you have a complete end-to-end solution set that can work for anyone in the small-business market, including those who haven’t gotten on the Internet or don’t have time to do it themselves,” David Brown, the chief executive of Web.com said in a statement, Washington Post reports.
Tim Kelly, Network Solutions chief executive on the other hand expressed his opinion by saying, “We’re seeing a heck of a lot more small businesses adopting Web services. It creates meaningful scale at a time when there is lots of growth."