Website Pros and Web.com, the listed Internet services providers, have announced they have agreed to merge in a USD 129m transaction.

Shareholders of Georgia-based Web.com may elect to receive for every Web.com share either 0.6875 shares of stock in Florida-based Website Pros or USD 6.5233 in cash, subject to proration so that the total cash paid shall equal USD 25m. In the aggregate, Website Pros will issue approximately nine million shares of Website Pros stock and pay USD 25m in cash.

In addition, Website Pros will assume all of the outstanding options to purchase common stock of Web.com at an exchange rate consistent with the value offered to holders of Web.com common stock. Based on the closing price of Website Pros' stock on 26 June, the transaction is valued at USD 129m.

The merger, which is subject to regulatory reviews and approvals, approval by the shareholders of both companies and certain other customary conditions, is expected to close during the second half of 2007.

(c) Company press release