Top Completes Network Solutions Acquisition

October 31, 2011 by  

Web Hosting ServicesJACKSONVILLE, FL – Group, Inc. (Nasdaq:WWW), a leading provider of internet services and online marketing solutions for small businesses, today announced the successful completion of the acquisition of Network Solutions from NetSol Holdings LLC, a Delaware limited liability company (the “Seller”), under the terms of the Acquisition Agreement previously announced on August 3, 2011.

“The acquisition of Network Solutions is an historic event in our mission to become the go-to provider for everything small- and medium-sized businesses need to succeed online and leverage social-local-mobile strategies,” David Brown, chairman and chief executive officer of, noted. “This transaction more than doubles our revenue, triples the size of our customer base, and provides the expanded scale to invest greater resources in growth and branding initiatives.” paid NetSol Holdings LLC $405 million in cash and 18 million shares of common stock. In addition, refinanced certain credit facilities of Network Solutions and paid certain expenses of Network Solutions relating to the transaction. The cash portion of the acquisition was funded with new credit facilities, consisting of a six-year, $600 million first lien term loan, a five-year, $50 million first lien revolving credit facility (of which $21 million was funded at closing) and a seven-year, $150 million second lien term loan.

“While the interest expense on our newly issued debt is greater than previously forecast due to recent deterioration of the debt markets, we also expect cost synergies to be greater than originally anticipated. We intend to use the significant free cash flow of our combined company to aggressively de-lever our balance sheet as well as invest in growth,” noted Brown. “We continue to expect the transaction to be approximately 20 percent accretive in 2012, with significantly greater accretion in future years. We believe the positive impact on our financial profile has the potential to drive a significant increase in shareholder value over the next 12 to 24 months.”

Earlier this week, stockholders overwhelmingly approved the issuance of 18 million shares of common stock, or approximately 37% of the Company, to NetSol Holdings LLC. Anton J. Levy, a member of the board of directors of the Seller and a Managing Director of General Atlantic LLC, an affiliate of the Seller, has joined the board of directors.

“In addition to greatly expanding the pool of customers that can benefit from our full suite of and Network Solutions services, this transaction also brings us the talents of hundreds of Network Solutions’ employees who are devoted to helping small- and medium-sized businesses,” Brown continued. “Our respect for their professionalism and passion for excellence was a key component in our pursuit of this combination, and we are proud to have them join our organization.” is scheduled to release its 3Q’11 financial results and provide more details regarding the financial outlook of the combined company after the U.S. financial markets close on Thursday, November 3, 2011. More information can be found at

About Group, Inc. (Nasdaq:WWWW) is a leading provider of internet services and online marketing solutions for small businesses. meets the needs of small businesses anywhere along their lifecycle by offering a full range of online services and support, including domain name registration services, website design, logo design, search engine optimization, search engine marketing and local sales leads, general contractor leads, franchise and homeowner association websites, shopping cart software, eCommerce web site design and call center services. For more information on the company, please visit or call 1-800-GETSITE.

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