Endurance International Group Holdings, Inc. (NASDAQ: EIGI) has shown strong performance on Monday session as its shares soared 61.62%. The IT Services company has announced today that it has signed a merger agreement with Clearlake Capital Group L.P. Clearlake Capital Group L.P will acquire Endurance International in an all-cash transaction valued at approximately $3.0 billion including outstanding indebtedness.
The company has also disclosed financial results for its third quarter ended September 30, 2020. It has reported a net income of $6.7 million and a GAAP revenue of $278.4 million in the third quarter of 2020. Endurance International Group Holdings has recorded a Cash flow from operations of $54.6 million and Free cash flow of $42.6 million.
The IT service company has reported an increase of 3% as compared to the revenue of the third quarter of 2019. Its Adjusted EBITDA for the third quarter of 2020 was $78.7 million, a decrease of 1 percent compared to the third quarter 2019 adjusted EBITDA of $79.6 million, excluding SinglePlatform.
The company will not hold a conference call it has scheduled earlier on November 5, 2020, to discuss the third quarter 2020 financial results. Additionally, it has recorded the total subscribers on the platform on September 30, 2020, of approximately 4.965 million as compared to approximately 4.780 million subscribers on September 30, 2019.
Endurance International Group Holdings, Inc. (NASDAQ: EIGI) shares were trading down 61.62% at $9.39 at the time of writing on Monday. Endurance International Group Holdings, Inc. (EIGI) share price went from a low point around $1.31 to briefly over $6.69 in the past 52 weeks. EIGI market cap has remained high, hitting $875.39 million at the time of writing.
An investor rights firm, Halper Sadeh LLP has commenced an investigation on the sale of Endurance International Group Holdings, Inc. to affiliates of Clearlake Capital Group L.P. for $9.50 per share in cash is fair to Endurance International shareholders. The firm will ask for increased consideration for shareholders and will request the firm to share additional information related to the proposed transaction, or other relief and benefits.