Hostgator sold for $225 Million USD

It seems Endurance International Group is buying up any and every major web hosting company out. Hostgator is reported to be the latest acquisition.
The major hosting giant HostGator has been sold. According to the sources HostGator has been sold to EIG [Endurance International Group]. The deal is already signed however there is no specific reason mentioned for it. This is a major occurrence in the web hosting industry. EIG is a group of web hosting companies and over a period of time they have acquired many prominent web hosting companies. Among the arena of web hosting companies, EIG also has HostGator now.

It is believed that an amount of $225 Million USD was offered to HostGator owner, Brent Oxley and the deal was accepted by him. The process of transfer of ownership is still in process. Previously, EIG has acquired a lot of big web hosting companies. In terms of the acquired web hosting companies, the effect of this step was the loss of customer base. As EIG transfers all the account to their data center, the customers experience downtime at regular intervals and thereby the customer base is lost. The outcome of the deal between EIG and HostGator is unknown however considering the effects on the prior web hosting companies acquired, there will surely be a major impact on the web presence, brand awareness and customer base of HostGator. HostGator currently has over 400,000 customers globally, there is a big question as to how EIG will be able to mange the HostGator setup. The owner seems to be pretty convinved with the deal with and one of the reasons he mentioned for accepting this deal is that he is looking for a new challenge, could he be thinking of HostGator replication?

Some companies owned by EIG:
Netfirms
BlueHost
Netfirms
FastDomain
FatCow
iPage
And Now Hostgator