Network Solutions bought by Greenwich-based equity firm
March 08, 2007. By Richard Lee.
General Atlantic, a Greenwich-based private equity firm, has added a Virginia online services company to its stable of businesses.
The investment company this week bought Herndon-based Network Solutions from Najafi Cos., (formerly Pivotal Private Equity), for an undisclosed price.
Network Solutions, a provider of online applications for small businesses who want to be found on the Internet or sell online, offers a range of Web-related services, including Web hosting, Web site design, e-commerce, search engine marketing, SSL certificates, e-mail and domain name registration services.
It has about 900 employees in Herndon and offices in Belleville, Ill., Hazleton, Pa., and Toronto, Canada.
"Our new partnership with General Atlantic will help us continue to grow our business by enhancing and expanding our product set while continuing to provide our customers with an outstanding customer service experience," said Champ Mitchell, chairman and chief executive officer of Network Solutions. "With GA's knowledge, experience and resources in the Internet industry, we also will look at expanding through new acquisitions and distribution channels."
Joining Network Solutions board of directors are Mark Dzialga and Anton Levy, General Atlantic managing directors. Additional directors will be added to the board in the coming months.
Mitchell and the current Network Solutions management team will continue to lead the company.
"We believe Network Solutions is in a strong position to capture the small business market," Dzialga said. "This company understands and delivers what small businesses need and expect from an online services provider.
Founded in 1979, Network Solutions manages more than 7.6 million domain names. In 1992, the National Science Foundation granted Network Solutions an exclusive contract to be the sole domain name registrar for .com, .net and .org.
Najafi Cos. purchased Network Solutions from VeriSign Inc. in November 2003, and during its tenure with Najafi the business transformed itself from a domain register to a leading provider of online services for small businesses.
"Champ and his team are committed to providing the online expertise small businesses want and need to succeed on the Web," Levy said.
When the sale agreement was announced in February, Mitchell said his company would benefit from General Atlantic's depth of experience in the technology sector.
"This new partnership should help us accelerate our current 30 percent top-line growth rate," he said. "Network Solutions is gaining a strong, long-term partner with a solid track record of investing in companies and assisting in their strategic growth initiatives."
Founded in 1980, General Atlantic has about $12 billion of capital under management. General Atlantic has invested in more than 160 companies, with current holdings in 50 portfolio companies of which about one-half are based outside the United States.
General Atlantic has more than 70 global investment professionals among its 150 employees worldwide with offices in Greenwich, New York, Palo Alto, London, Dusseldorf, Hong Kong and Mumbai.
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