06 22 18 jdr

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FRIDAY June 22, 2018

PUBLIC LEGAL NOTICES BEGIN ON PAGE 3

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THE MATHIS REPORT

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Web.com Group Inc. says its buyout by Siris Capital Group won’t change its plans to move to a 218,000-square-foot headquarters building under development along Gate Parkway.

Jacksonville-based Web.com Group Inc. agrees to acquisition by Siris Capital Group and will keep its name and Jacksonville headquarters. BY MARK BASCH CONTRIBUTING WRITER

Web.com Group Inc. agreed Thursday to a $2 billion buyout by a private equity firm that will keep the company headquartered in Jacksonville, with its operations mainly intact. Affiliates of New York-based Siris Capital Group LLC agreed to pay $25 per share in cash to buy the company, which was founded in Jacksonville in 1999 as Website Pros Inc. The company said in an employee communication Thursday that the new owners intend to keep the name Web. com, which has become a high profile brand since it became the main sponsor of the PGA Tour’s second-level golf tour in 2012.

WEB.COM GROUP INC.

What: Website design and management; marketing History: Formed in 1999, according to annual report Based: Flagler Center, Jacksonville 2017 revenue: $749 million, up 5.5% Employees: 3,600 total

That notice also said Web. com’s plans to move into a new 218,000-squarefoot headquarters building under construction at 5379 Gate Parkway are not changing. That building, called Town Center Brown Two, is scheduled to open in spring 2019. “This transaction will provide shareholders with immediate and substantial cash value, while also providing us with a partner that shares in our commitment to customers and employees and can add strategic and operational value,” Web. com CEO David Brown said in a news release. Brown was not available for additional comment Thursday. “Siris looks forward to nurturing Web. com’s core domain business, supporting and anticipating the diverse needs of

Acquirer: Siris Capital Group LLC Price: About $2 billion Per share: $25 Deal closing: 4Q 2018

the company’s customers, and driving new opportunities for innovation and growth,” Siris Executive Partner Robert Aquilina said in the news release. Web.com said it had about 1,000 Jacksonville employees when it announced the new building in November, but the company said in March it eliminated a “small percentage” of jobs, without giving any figures. Web.com’s annual report said it had 3,600 total employees at the end of 2017, with additional offices in eight U.S. cities and in Canada, Argentina and the United Kingdom. The employee notice said no immediate changes are anticipated in executive management from the buyout, and also said “we do not anticipate the day-today operations of the company to immediately change.” The agreement with Siris is subject to a “go-shop” period until Aug. 5 in which Web.com could seek higher offers. Wall Street apparently sees that as a

KAREN BRUNE MATHIS EDITOR

IP Capital makes $13.8M investment

Boca Raton investment group buys the Spring Lake Business Center. IP Capital Partners bought the Spring Lake Business Center this week for $13.8 million. The Boca Raton-based investment group paid $60 a square foot for the eight-building, 230,276-square-foot complex at 8647 to 8663 Baypine Road in Southside. IP Capital Partners President Jason Isaacson said occupancy is in the upper 60 percent range. It was developed in the mid-1980s. Equus Capital Partners Ltd. sold the property. Equus is a private equity real estate fund manager based in the Philadelphia area with regional offices in Atlanta and four other cities. “Like we’ve done with a lot of our Jacksonville projects, we are going to improve the physical plant to increase its attractiveness to tenants,” Isaacson said. “The goal is to bring new business and jobs into Jacksonville,” he said. Isaacson said the sellers had begun renovations “and we plan to finish it.”

KMATHIS@JAXDAILYRECORD.COM @MATHISKB (904) 356-2466

SEE WEB.COM, PAGE 2

Southeastern Grocers remodels Jacksonville-based Southeastern Grocers opened a remodeled Winn-Dixie on Thursday as one of 100 stores that CEO Anthony Hucker said will be upgraded this year. PAGE 2 VOLUME 105, NO. 154 • ONE SECTION


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