Some tidbits from EIG's most recent earnings call (source).
...we acquired the assets of IX Web Hosting for a total consideration of $28 million.
EIG also talks a lot about Constant Contact acquisition which seems like it's about to be gutted personnel wise.
Importantly, as part of this acquisition, we believe we have the opportunity to reduce cost and better balance top line and investment in order to drive accretive EBITDA and future cash flows. Our plan for the reduction in cost was based primarily on head count reductions, which accounts for $48 million of the $55 million in targeted annual run rate synergies. With the head count reductions last week, we eliminated approximately $30 million in annual run rate costs. We intend to continue to balance costs and investments appropriately across our brands in order to continue to leverage our scale.
And they also are saying to expect less M&A in the next couple years.
Brian L. Essex - Morgan Stanley & Co. LLC
Good morning, and thank you for taking the question. Marc a question for you. I guess with the combination of Constant Contact, given the profile that you just kind of highlighted with the reduction in debt target by the end of fiscal 2017, with the addition of Constant Contact to the platform as well, how might your M&A appetite change versus how Endurance has run its acquisition strategy historically? What will you be focusing on? And will you be perhaps taking a pause from M&A or managing it a little bit differently? Maybe a little bit of color there would help.
Hari K. Ravichandran - President, Chief Executive Officer & Director
Sure. This is Hari. So, from an M&A standpoint, obviously we've just completed this sizeable transaction. It's a big team. We have a lot of work still in front of us cut out for getting the integration done, realizing the synergies and the costs on the revenue side. Our bar for M&A is probably significantly higher than it ever has been in the past. We've always been very judicious about capital deployment and looking at return on invested capital, IRRs, and present value of acquisitions as we have done them in the past.
But given the fact that there is significant opportunity within our current asset base, and given the opportunities for further refining those, I would say over the next four to six quarters, from an M&A standpoint, the bar is quite a bit higher, with the focus more on debt pay down for the business to get the leverage down as Marc noted in his remarks.