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Endurance International Group (EIG) is Buying HostGator

Non EIG Hosting Options

In addition to HostGator, Endurance International Group (EIG) now owns many other popular web hosting companies. If you are specifically looking for a reliable web host that is not owned by EIG we highly recommend WebHostingHub and InMotion Hosting. Some other non EIG hosting options worth checking out include: GreenGeeks, A2 Hosting, MediaTemple, and StableHost.

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HostGator Endurance International Group“Endurance Kicks Off $225M CF Wednesday –

By Carol J. Clouse

June 18, 2012

Proceeds from the transaction will back website hosting company’s acquisition of Houston-based Hostgator.”
Source –
http://www.leveragedfinancenews.com/news/Endurance-International-Credit-Suisse-acquisition-credit-facility-Hostgator-231191-1.html

I asked HostGator’s Live Chat Department to confirm if this was true and the response was “Unfortunately I do not have any information on this issue Mike.”

Update 06/21/2012 – Statement from Brent Oxley – HostGator’s CEO

” Hello Fellow Gators,

There have been rumors flying around the web and the office about
HostGator being sold for many years now. I’d like to address these
rumors and put many of your fears to rest. I still own 100% of
HostGator and haven’t collected a single penny towards any buyouts at
this time.

The latest rumor is the first that actually has some truth behind it.
I have indeed agreed to sell HostGator to Endurance International Group, which is why you’re hearing stories
about EIG raising financing to purchase us. We are currently under
contract and if everything goes according to plan, EIG will be
purchasing HostGator in the next 3-4 weeks. This is the first time in
HostGator’s history that we have ever reached an agreement on the
terms needed to complete a deal.

In the last few months, I’ve spent countless hours getting to know
EIG’s CEO Hari Ravichandran, and I can honestly say that he is one of
the most trustworthy and knowledgeable people that I’ve ever met. In
other deals we’ve looked at, the potential buyers have only seen
HostGator as a slot machine and that’s not true of Hari. He clearly
understands that HostGator is the 800 pound gorilla that it is today
thanks to all of you who provide the legendary support that HostGator is known
for.

It’s only natural for all of you to be apprehensive towards change and
the fear of possibly losing your job. I can write whatever I want in order to
cover for EIG, but I would rather let the facts speak for themselves:

When I first heard about EIG purchasing Bluehost in November 2010, I
was extremely ecstatic. The first thoughts that came to mind were that
EIG was going to destroy the company, resulting in one of our biggest
competitors going the way of the dodo. However, rather than plunder
and pillage, they’ve hired and flourished. Bluehost was at 280
employees when the sale closed and they have 450 today. Their
management team has stayed the same and the culture has stayed the
same. Now, the Bluehost culture, employees, and philosophy have taken
hold to become the new status quo of EIG.

I’m confident the same will happen once again with the best of
HostGator culture, ideas, people, and leadership coming together at
EIG to create a more powerful hosting company than the world has ever
seen. In fact, I’ve heard that EIG with HostGator will be even bigger
than GoDaddy.

Once this deal is complete, I will continue to own all of the
HostGator occupied buildings through Oxley Leasing. EIG and I will
soon have a leasing deal in place that will not only include all of
the current occupied space leased, but will also expand Austin by
30,000 square feet as well as Houston by another 10,000-20,000 square
feet. Hari has also told me that one of his first acts of business
will be to do a major renovation of the Houston office. If EIG planned
on downsizing, they wouldn’t be signing such huge expansions in both
Houston and Austin.

HostGator will be EIG’s largest acquisition to date and with that it’s
going to create countless opportunities for each and every person. Not
only at HostGator, but also at other EIG brands. I can’t stress enough how
instrumental it will be for EIG to replicate HostGator’s strengths
across all of their brands, and to do that, they will need HostGator
leaders and know how.

There are many of you who are going to call me crazy for deciding to
sell during a time in which HostGator has experienced unprecedented
growth and success. I’ll do my best below to share a few of the many
reasons behind my decision:

* I want to travel the world before my wife and I have kids.
* I’ve been doing HostGator since I was 18, and I’m looking for a new
challenge.
* I’m extremely worried about the financial path our country is headed down.
* Taxes will be going up significantly in 2013, making it more
difficult for business owners.
* I’ve failed more times than I can count to launch software that
would allow us to compete as a registrar.
* We have tried and failed to develop a billing system that has
automated and can integrate with our key systems such as chat, phone,
affiliates, and tickets. I think we are finally on the right track,
but unfortunately I no longer have the patience to wait for it to all
come together. Thankfully EIG has tackled a lot of these challenges
already.
* I have practically 100% of my chips in HostGator and if something
should ever happen to the company, I’d more than likely be bankrupt in
a matter of a few months.

I could stick with HostGator for a few more years and turn it into a
multi-billion dollar business, but I think now is the right time for
me to move on and to let the company continue to grow and succeed
under EIG.

If any of you have any questions, feel free to email me at
brent@hostgator.com and I’ll do my best to get them answered. The key
thing to remember is that this deal isn’t complete yet, and if and
when it completes, Adam Farrar and the rest of management won’t be
going anywhere.

Sincerely,
Brent Oxley”

Source: HostGator EIG Email

Please share your comments below regarding the acquisition of HostGator by EIG.

This Post Has 6 Comments
  1. Even though my entire network of sites is hosted in HostGator I’m not concerned about this at all.

    Brett would never put Hostgator in the wrong hands and has made sure EIG’s CEO is not only an awesome guy but also THE guy to sell HG to.

    They (EIG) acquired BlueHost in the past and they made it better (even though I prefer HG over BH anytime) so don’t freak out, is not like HG is going to suck now.

    Sergio

  2. In response to the last post. I didn’t know EIG had acquired BlueHost. Might need to watch out if they corner the market by buying all the major hosting providers.

  3. it was awesome at hostgator…until NOW. my site just got moved last month from a softlayer server now to a bluehost server and I’ve had more downtime in one month than the entire time I was with hostgator. search ‘hostgator down’ recently and you’ll find lots of problems. hostgator was ruined by this acquisition.

  4. Well, unfortunately, if you view hostgator’s forums, most of the new “migrations” have resulted in near disaster to the provo datacenter. Instead of an efficient migration and dealing with customers’ issues on individual basis, they are forging full speed ahead and leaving their customers in dire straights with so many issues, not getting resolved. Tech support doesn’t respond, no one answers the questions in the forums. So yeah, Brent, we’re sure EIG couldn’t possibly screw this up for your prior customers, those who have left due to EIG’s incompetence in handling server migration.

  5. Are you kidding me with this comment from Sergio ” Brett would never put hostgator in the wrong hands….” Who are you ? The PR guy for EIG? For your info, customer service at hostgator has gone into the toilet from anyone who actually hosts there. I personally have 4 sites that were hacked and have a URL hijacked situation – NOT from my domain name registrar but within the hosting and it’s still down after one week. When you call tech support and ask for a manager they say it will be hours – ya know why – tech support is in India probably….. staff cut… who cares. I say if you are reading this right now… run from hostgator. They used to be good but good ‘ol Brett sold out…. and by the way… it’s Brent not Brett.

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