Endurance International Group, Inc. (EIG)

eig-logo2Endurance International Group, Inc. (EIG), formerly BizLand, is a web hosting company. The company was founded in 1997 and is headquartered in Burlington, Massachusetts. It achieved its size by acquiring a large number of smaller companies, which it continues to operate under the original brand names.

In 2011, Endurance was bought from Accel-KKR by Warburg Pincus and GS Capital Partners, for around $975 million. The company went public in October 2013.

In April 2014, a major network issue at the data center in Provo, Utah, affected customers of Bluehost, HostMonster and JustHost, and took down many of the dedicated servers owned by HostGator customers.

In March 2015, the company announced an investment in Netherlands-based technology startup AppMachine, acquiring 40% of the company.

In August 2015, EIG announced the acquisition of Site5 and Verio. It is estimated that EIG gained 86,000+ new subscribers through these acquisitions.

In February 2016, the company acquired Constant Contact, and days later laid off 15% of their workforce.


What’s Next for the New EIG Acquisitions?

If the past is any indication of the future, we can safely assume that EIG will continue to expand it’s operations and acquire more and more web hosting properties. As soon as EIG buys a hosting company, it typically makes several changes to the company such as changing the control panels, equipment, data center locations, operational changes to existing staff and starts moving customers to their own network. Some customers have noticed a significant reduction in the level of customer/technical support following the purchase of a hosting company by EIG.

Since the purchase of HostGator, some customers have become frustrated with their quality of service. Some have noticed a delay in response time when submitting tickets. Also with accounts being moved from SoftLayer to the EIG data center in Provo, UT there has been an increase in customer complaints. On the outside, HostGator among most of EIG’s other acquisitions have remained the same, while all the changes took place on the administration and technical side of things. It is possible that HostGator is not the same company we once knew to be reliable and performance-based.

The Sad Truth – With EIG owning a number of the top web hosting companies in the industry; even if you are dissatisfied with one host and choose to switch to another; there’s a good chance that you might still end up with a company owned by EIG (see full list of EIG brands above). A really good business model to have for EIG.



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