Web.com Acquires Solid CactusApril 27, 2009
JACKSONVILLE, Fla., April 27, 2009 (GLOBE NEWSWIRE) -- Web.com (Nasdaq:WWWW), a leading provider of online marketing for small businesses, announced today that it has acquired substantially all of the assets and select liabilities of privately-held Solid Cactus(r), an award-winning eCommerce site builder and solutions provider. The acquisition of Solid Cactus enhances Web.com's strategic position as a comprehensive, "one-stop" resource for small and medium-sized businesses (SMBs) seeking online marketing and eCommerce solutions.
"The acquisition of Solid Cactus demonstrates our commitment to providing SMBs with a broad range of online marketing solutions and eCommerce expertise to help them convert website traffic to sales," said David Brown, Chairman and CEO of Web.com. "As more consumers make their buying decisions online, small businesses see the increasing importance of having a professionally built e-store. This is further reinforced by recent studies that show that online shoppers are less sensitive to adverse economic conditions than the average U.S. consumer. Solid Cactus' eCommerce site building capabilities and suite of solutions are an excellent complement to Web.com's 1ShoppingCart.com eCommerce platform and our recent partnerships in small business payment processing."
Solid Cactus provides a full-range of solutions for new and existing online businesses, including website and eCommerce store design and programming, pay-per-click advertising management, search engine optimization, affiliate program and e-mail marketing management, call center and virtual office services, and Software as a Service (SaaS) products (FeedPerfect and Cactus Complete Commerce).
"Joining Web.com provides Solid Cactus with the resources to enhance our specialized eCommerce and online marketing product offerings," said Scott Sanfilippo, co-founder and President of Solid Cactus. "We look forward to working with our new colleagues at Web.com in expanding our presence in the eCommerce market."
Solid Cactus will continue to operate as a separate brand of Web.com and will retain its offices in Shavertown and Wilkes-Barre, Pennsylvania.
Financial terms of the transaction were not disclosed. Web.com does not expect the transaction to have a material impact to its 2009 non-GAAP diluted earnings per share, which excludes the non-cash expense associated with amortization of intangibles associated with acquisitions. Management has not yet determined the impact on its 2009 GAAP earnings per share, as it has not completed its valuation analysis. Management will discuss the expected contribution from Solid Cactus, including the anticipated impact on a GAAP basis, during its first quarter results conference call scheduled for May 4, 2009.
In conjunction with the acquisition, Web.com will grant inducement awards to 125 new employees from Solid Cactus under Web.com's 2009 Inducement Award Plan, adopted in anticipation of the acquisition. The inducement awards consist of options to purchase an aggregate of 146,900 shares of Web.com's common stock. The options have a ten year term and an exercise price equal to the closing price of Web.com's common stock on the date of grant. The options vest each month ratably over four years.
This press release includes certain "forward-looking statements" that are subject to risks, uncertainties and other factors that could cause actual results or outcomes to differ materially from those contemplated by the forward-looking statements. These forward-looking statements include, but are not limited to, the impact of the acquisition of Solid Cactus on our 2009 non-GAAP diluted earnings per share and our plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts and statements identified by words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates" or words of similar meaning. These statements are based on our current beliefs or expectations and there are a number of important factors that could cause the actual results or outcomes to differ materially from those indicated by these forward-looking statements, including without limitation, our ability to maintain our existing, and develop new, strategic relationships, our ability to integrate any acquired businesses, the accounting for acquisitions and those risks set forth under the caption "Risk Factors" in Web.com Group, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2008, as filed with the Securities and Exchange Commission. These filings are available on a Website maintained by the Securities and Exchange Commission at www.sec.gov. Web.com Group, Inc. does not undertake any obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise.
About Solid Cactus, Inc.
Solid Cactus, Inc., headquartered in Shavertown, PA, has designed or redesigned more than 3,500 eCommerce websites. Solid Cactus was recognized as one of the country's fastest growing companies by Inc. Magazine in 2007 and 2008 and was named one of the "Best Places to Work in Pennsylvania" in 2006, 2007 and 2008. The company provides its clients with a full array of Web design and eCommerce solutions, including search engine marketing (SEM), pay-per-click (PPC) management, affiliate program management, call center services, back-end order management, print design and consulting. For more information on Solid Cactus, visit www.solidcactus.com.
Web.com Group, Inc. (Nasdaq:WWWW) is a leading provider of online marketing for small businesses. Web.com offers a full range of online services, including Internet marketing and advertising, local search, search engine marketing, search engine optimization, lead generation, home contractor specific leads, website design and publishing, logo and brand development and eCommerce solutions, meeting the needs of small businesses anywhere along their lifecycle. For more information on the company, please visit www.web.com or call 1-800-GETSITE.
CONTACT: Web.com, Olga Gikas, 904-680-6679, firstname.lastname@example.org
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