Implication of Acquisition of Bigrock by EIG
Endurance international Group (EIG), which is the parent company of the Hostgator, has completed the acquisition of the Bigrock Hosting along with its sister companies Resellerclub.com, Logicboxes.com and Webhosting.info. All of these 4 companies were part of the Directi Group. Directi has signed an agreement last year with EIG through which EIG would buy these 4 companies of the EIG for valuation of around $100 to $110 million and EIG has paid $5 million as the upfront payment. The agreement has contemplated completed the completion of the deal within one year which now has been completed within few months.
Now, the Resellerclub.com and Bigrock.com has a very strong position in India and together they hosts million of domains. While the Resellerclub.com specialises in Reseller Hosting while the Bigrock.com is known for its Shared Hosting and VPS hosting. Bigrock enjoys No.2 position in India and is fast approaching the Number one position in India. Resellerclub.com is the number one Reseller Hosting in India and is also has significant number of international customers.
Hostgator also has an Indian Subsidiary, Hostgator.in, through which it offers hosting for Indian clients. Hostgator India has servers in India and Singapore. Hostgator has entered the Indian market quite late and thus, do not have significant position in India. The main competition in India was emerging between Bigrock and Godaddy. Godaddy has been quite aggressive in India with its advertisements and has been growing at a rapid pace in India. Now, with the merger of Bigrock with EIG, the competition will be going to increase and you can expect pricing wars and advertisement wars between these two giants of web hosting.
The acquisition of the Bigrock also gives the EIG a reliable name in the Domain Name business to counter the domain name offering of the Godaddy. Bigrock is also an ICANN accredited registrar and hence, EIG can look to increase their domain names business not only in India but also internationally. It should be known that the Resellerclub and Bigrock together accounted for around 60 to 70% domain names sold in India.
So, just wait and watch and see the giants fight it out to conquer Indian Web hosting and Domain Name markets.