Network Solutions Fetches $560 Million

Web.com Group Inc., a provider of online marketing and website services to small and medium-sized business, has agreed to acquire Network Solutions, one of the largest Internet domain-name registrars, for about $560 million in cash and stock.

Network Solutions competes with GoDaddy Group Inc., which agreed last month to sell itself to private-equity firms KKR & Co., Silver Lake Partners and Technology Crossover Ventures for $2.25 billion, including debt. GoDaddy.com, the company's flagship Web property, is the world's largest registrar of domain names. Including debt, the Web.com deal is valued at about $764 million. Jacksonville, Fla.-based Web.com will pay $405 million in cash and issue 18 million shares, valued at about $155 million as of Wednesday's closing price of $8.65 per share, to private-equity firm General Atlantic LLC, the majority owner of Network Solutions. General Atlantic and other Network Solutions shareholders will own 37% of Web.com's stock after the transaction is completed. The acquisition will give Web.com access to around two million small businesses that are registered with Network Solutions, Web.com Chief Executive David Brown said in an interview Wednesday. Web.com hopes to sell website-building, online marketing, e-commerce and related services to these new customers, Mr. Brown said. Small and medium-sized businesses are using local online search, social networks such as Facebook and smartphone applications in an effort to reach more customers, he added. Web.com already reaches about one million businesses. In addition to domain names, GoDaddy.com sells e-commerce, security and other services to individuals and businesses looking to manage their online presence. Web.com, however, focuses purely on businesses.