For small businesses, this means that the market for online marketing solutions is going to grow, offering them more and stronger companies with more solutions.
For startups who are creating online marketing solutions, they can look forward to being acquired (such as Constant Contact buy NutShell Mail)
Web.com gains 2 million retail customers and hundreds of thousands of wholesale customers of which to cross-sell and up-sell their services to and develop new products to sell to the their combined customers.
Web.com’s press release reads – this transaction represents a unique opportunity to dramatically expand our scale, add further momentum to Web.com’s already improving top line growth, and further expand our market share as the nationally recognized go-to provider of online marketing solutions specifically tailored to small and medium-sized businesses,” said David Brown, Chairman and CEO of Web.com. “Our integration strategy will be similar to our successful acquisition of Register.com, and we will be in a strong position to cross-sell and up-sell our services to Network Solutions’ approximately two million retail customers and hundreds of thousands of wholesale customers. We believe this combination will provide significant long-term shareholder value as we grow our business, capitalize on synergies, improve our margins and generate substantial cash flow to invest greater resources in growth and branding initiatives.”
With this purchase Web.com is looking to reach more into the $19 billion online services market for small and medium businesses.
The combined company is expected to have:
- Approximately 3 million paying subscribers
- More than 9 million domains under management
- More than 1,900 employees worldwide
While this is great news for small businesses, the market will now heat up as Constant Contact, Deluxe, Intuit and hundreds of smaller companies compete for the online marketing dollars of small businesses.
One of the big differences small businesses should look for is what companies are selling to small businesses and have a HEART for small businesses and what companies are selling to small businesses and are only selling for the sake of a financial investment.
Update: Web.com writes via Twitter:
Rest assured, @ramonray we have not only HEART for small businesses, but also feet on the ground to help them grow their presence online!