JACKSONVILLE, Fla.—Web.com Group Inc., which does online marketing for small businesses, said Thursday it has agreed to acquire privately held Register.com for $135 million.
Web.com said it will pay $20 million in cash, and finance the rest with proceeds from a new $110 million term loan and a $5 million seller note.
Register.com, which provides Web domain name registration and website design, complements Web.com's existing services and gives the companies new opportunities to sell to each other's customers.
The deal is expected to cut annual costs by $10 million, Web.com said. The company expects it to boost adjusted earnings immediately.
The combined company will have more than 1 million paying subscribers and more than 1,100 employees in the U.S. and Canada, based on figures from March 31.
Web.com shares rose 3 cnets to close at $3.84.
