Investors

Investors

We are a publicly traded company that has been providing business-class website, email, SQL Server, MySQL, and SharePoint hosting services to thousands of small to large sized companies from around the world since 1997.

Strategy

The Company was founded with the intention of acquiring privately held companies in its market space, operating them and maintaining or improving margins by economy of scale, and creating shareholder value by arbitraging the public versus private valuation multiples. Shareholder values would also benefit from the industry standard organic growth rates of the owned companies and brands and participation in new emerging market segments.

Competitive Strengths & Economies of Scale

The Company believes it will have competitive strengths versus smaller rivals because of the following economies and other benefits of larger scale.

  • Bandwidth
  • G&A (accounting, marketing, etc)
  • Cost of and Access to Financing
  • Expertise and Support
  • Multiple Data Centers
  • Broader Solution Lineup

Market Size Opportunity

Tier1Research estimates the worldwide hosting market to be $24.4 billion in 2010. This revenue comes from three major categories – managed hosting, dedicated hosting, and shared hosting.

Industry Peer Valuations*

Web.com Rackspace Teramrk Peer1 AWI Average
EBITDA 7.7% 28.4% 23% 21% 20.5% 20%
Mkt. Cap to EBITDA 25.7 17.6 10.6 9.2 0.83 15.7

*Data from December, 2010