|
Michael Zeisser
Chairman of the Board |
| |
Michael Steib
Chief Executive Officer |
|
| Date: | | |
December 18, 2018
|
|
| Time: | | |
11:00 a.m. local time
|
|
| Place: | | |
Offices of Wachtell Lipton at 51 West 52nd Street, New York, New York 10019
|
|
| Record Date: | | |
November 12, 2018
|
|
| Please vote your shares. | | |
If you are a stockholder of record, you may vote in the following ways:
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| |||||||||
|
We encourage stockholders to vote promptly. If you fail to vote, the effect will be the same as a vote “AGAINST” the proposal to adopt the merger agreement.
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| |
By Telephone In the U.S. or Canada you can vote by calling 1-800-454-8683. |
| |
By Internet You can vote online at www.proxyvote.com. You will need the 12-digit control number on the proxy card. |
| |
By Mail You can vote by mail by marking, dating and signing your proxy card and returning it in the postage-paid envelope. |
| |
In Person You can vote in person at the special meeting. Please refer to the section of this proxy statement entitled “The Special Meeting — Date, Time and Place of the Special Meeting” for further information regarding attending the special meeting. |
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| | | | If your shares of common stock are held by a broker, bank or other nominee on your behalf in “street name,” your broker, bank or other nominee will send you instructions as to how to provide voting instructions for your shares. Many brokerage firms and banks have a process for their customers to provide voting instructions by telephone or via the Internet, in addition to providing voting instructions by a voting instruction form. | |
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| | | | 95 | | | |
| | | | 96 | | | |
| | | | | | | |
| | | | A-1 | | | |
| | | | B-1 | | | |
| | | | C-1 | | |
| | |
Fiscal Year Ended December 31,
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||
($ in millions)
|
| |
2018
|
| |
2019
|
| |
2020
|
| |
2021
|
| |
2022
|
| |
2023
|
| |
2024
|
| |
2025
|
| |
2026
|
| |||||||||||||||||||||||||||
Total Revenue
|
| | | $ | 169 | | | | | $ | 187 | | | | | $ | 212 | | | | | $ | 241 | | | | | $ | 270 | | | | | $ | 297 | | | | | $ | 321 | | | | | $ | 347 | | | | | $ | 371 | | |
% Growth
|
| | | | 5% | | | | | | 11% | | | | | | 13% | | | | | | 14% | | | | | | 12% | | | | | | 10% | | | | | | 8% | | | | | | 8% | | | | | | 7% | | |
Total Gross Profit(1)
|
| | | $ | 160 | | | | | $ | 178 | | | | | $ | 203 | | | | | $ | 232 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
% Margin(2)
|
| | |
|
95%
|
| | | |
|
95%
|
| | | |
|
96%
|
| | | |
|
96%
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Adjusted EBITDA(3)
|
| | | $ | 37 | | | | | $ | 43 | | | | | $ | 51 | | | | | $ | 59 | | | | | $ | 68 | | | | | $ | 77 | | | | | $ | 87 | | | | | $ | 96 | | | | | $ | 103 | | |
% Margin(4)
|
| | |
|
22%
|
| | | |
|
23%
|
| | | |
|
24%
|
| | | |
|
24%
|
| | | |
|
25%
|
| | | |
|
26%
|
| | | |
|
27%
|
| | | |
|
28%
|
| | | |
|
28%
|
| |
% Growth
|
| | | | 25% | | | | | | 16% | | | | | | 19% | | | | | | 15% | | | | | | 14% | | | | | | 14% | | | | | | 12% | | | | | | 11% | | | | | | 7% | | |
Unlevered Free Cash Flow(5)
|
| | | $ | 6 | | | | | $ | 21 | | | | | $ | 24 | | | | | $ | 29 | | | | | $ | 34 | | | | | $ | 39 | | | | | $ | 45 | | | | | $ | 50 | | | | | $ | 54 | | |
|
Implied Equity Value Per Share
Reference Ranges Based On: |
| |
Merger Consideration
|
| |||||||||
|
CY2018E Adjusted EBITDA
|
| |
CY2019E Adjusted EBITDA
|
| | | | | | | |||
|
$31.10 – $35.16
|
| | | $ | 29.74 – $34.45 | | | | | $ | 35.00 | | |
|
Announced
|
| |
Acquiror
|
| |
Target
|
|
| June 2018 | | |
•
Siris Capital Group, LLC
|
| |
•
Web.com Group, Inc.
|
|
| July 2017 | | |
•
Internet Brands
|
| |
•
WebMD Health Corp.
|
|
| July 2017 | | |
•
Red Ventures Holdco, LP
|
| |
•
Bankrate, Inc.
|
|
| May 2017 | | |
•
IAC/InterActiveCorp
|
| |
•
Angie’s List, Inc.
|
|
| October 2016 | | |
•
Ziff Davis, LLC
|
| |
•
Everyday Health, Inc.
|
|
| August 2016 | | |
•
Randstad North America, Inc.
|
| |
•
Monster Worldwide, Inc.
|
|
| February 2016 | | |
•
Web.com Group, Inc.
|
| |
•
Yodle, Inc.
|
|
| November 2015 | | |
•
All Web Leads
|
| |
•
InsuranceQuotes (insurance division of Bankrate, Inc.)
|
|
| November 2015 | | |
•
Expedia, Inc.
|
| |
•
HomeAway, Inc.
|
|
| November 2015 | | |
•
Endurance International Group Holdings, Inc.
|
| |
•
Constant Contact, Inc.
|
|
| September 2014 | | |
•
News Corporation
|
| |
•
Move, Inc.
|
|
| August 2014 | | |
•
Gannett Co., Inc.
|
| |
•
Cars.com/Classified Ventures LLC
|
|
| July 2014 | | |
•
Zillow, Inc.
|
| |
•
Trulia, Inc.
|
|
| June 2014 | | |
•
The Priceline Group Inc.
|
| |
•
OpenTable, Inc.
|
|
| March 2014 | | |
•
CoStar Group, Inc.
|
| |
•
Apartments.com (division of Classified Ventures LLC)
|
|
| July 2011 | | |
•
KKR & Co., Silver Lake Partners and Technology Crossover Ventures
|
| |
•
GoDaddy Group Inc.
|
|
|
Implied Equity Value Per Share
Reference Ranges Based On: |
| |
Merger Consideration
|
| |||||||||
|
LTM Adjusted EBITDA
|
| |
NTM Adjusted EBITDA
|
| | | | | | | |||
|
$21.27 – $25.24
|
| | | $ | 19.28 – $23.66 | | | | | $ | 35.00 | | |
|
Implied Equity Value Per Share
Reference Range |
| |
Merger Consideration
|
| |||
|
$26.22 – $32.24
|
| | | $ | 35.00 | | |
Name
|
| |
Number of Shares
Underlying XO RS Awards (#) |
| |
Value of Shares
Underlying XO RS Awards ($) |
| ||||||
Charles Baker
|
| | | | 1,519 | | | | | | 53,165 | | |
Diane Irvine
|
| | | | 1,519 | | | | | | 53,165 | | |
Barbara Messing
|
| | | | 1,519 | | | | | | 53,165 | | |
Peter Sachse
|
| | | | 1,519 | | | | | | 53,165 | | |
Michael Zeisser
|
| | | | 3,875 | | | | | | 135,625 | | |
Jan Hier-King
|
| | | | 1,124 | | | | | | 39,340 | | |
Name
|
| |
Cash
($)(1) |
| |
Equity
($)(2) |
| |
Perquisites/
Benefits ($)(3) |
| |
Total
($)(6) |
| ||||||||||||
Michael Steib
Chief Executive Officer |
| | | | 1,621,811 | | | | | | 9,248,249 | | | | | | 19,139 | | | | | | 10,899,199 | | |
Gillian Munson
Chief Financial Officer |
| | | | 663,420 | | | | | | 5,038,138 | | | | | | — | | | | | | 5,701,558 | | |
Paul Bascobert
President |
| | | | 644,097 | | | | | | 3,528,903 | | | | | | 22,756 | | | | | | 4,195,756 | | |
Nic Di Iorio
Chief Technology Officer |
| | | | 563,911 | | | | | | 2,107,488 | | | | | | 21,871 | | | | | | 2,693,270 | | |
Name
|
| |
Cash Severance
|
| |
Pro Rata Bonus
|
| |
Total
|
| |||||||||
Michael Steib
|
| | | | 1,133,000 | | | | | | 488,811 | | | | | | 1,621,811 | | |
Gillian Munson
|
| | | | 437,091 | | | | | | 226,329 | | | | | | 663,420 | | |
Paul Bascobert
|
| | | | 424,360 | | | | | | 219,737 | | | | | | 644,097 | | |
Nic Di Iorio
|
| | | | 393,928 | | | | | | 169,983 | | | | | | 563,911 | | |
| | |
Value of Assumed
Option Awards ($) |
| |
Value of Assumed
RS Awards ($) |
| |
Total
($) |
| |||||||||
Michael Steib
|
| | | | 6,063,984 | | | | | | 3,184,265 | | | | | | 9,248,249 | | |
Gillian Munson
|
| | | | 3,298,498 | | | | | | 1,739,640 | | | | | | 5,038,138 | | |
Paul Bascobert
|
| | | | 2,191,448 | | | | | | 1,337,455 | | | | | | 3,528,903 | | |
Nic Di Iorio
|
| | | | 1,376,408 | | | | | | 731,080 | | | | | | 2,107,488 | | |
| | |
Market Price
|
| |
Dividend
Per Share |
| ||||||||||||
|
Low
|
| |
High
|
| ||||||||||||||
Fiscal 2016 | | | | | | | | | | | | | | | | | | | |
First Quarter
|
| | | $ | 13.64 | | | | | $ | 16.36 | | | | | $ | 0.00 | | |
Second Quarter
|
| | | $ | 15.31 | | | | | $ | 18.18 | | | | | $ | 0.00 | | |
Third Quarter
|
| | | $ | 17.00 | | | | | $ | 19.57 | | | | | $ | 0.00 | | |
Fourth Quarter
|
| | | $ | 15.76 | | | | | $ | 20.89 | | | | | $ | 0.00 | | |
Fiscal 2017 | | | | | | | | | | | | | | | | | | | |
First Quarter
|
| | | $ | 14.99 | | | | | $ | 20.99 | | | | | $ | 0.00 | | |
Second Quarter
|
| | | $ | 16.06 | | | | | $ | 18.10 | | | | | $ | 0.00 | | |
Third Quarter
|
| | | $ | 17.29 | | | | | $ | 19.94 | | | | | $ | 0.00 | | |
Fourth Quarter
|
| | | $ | 18.21 | | | | | $ | 20.96 | | | | | $ | 0.00 | | |
Fiscal 2018 | | | | | | | | | | | | | | | | | | | |
First Quarter
|
| | | $ | 17.49 | | | | | $ | 22.54 | | | | | $ | 0.00 | | |
Second Quarter
|
| | | $ | 20.36 | | | | | $ | 34.58 | | | | | $ | 0.00 | | |
Third Quarter
|
| | | $ | 26.57 | | | | | $ | 35.83 | | | | | $ | 0.00 | | |
Fourth Quarter (through November 12, 2018)
|
| | | $ | 34.35 | | | | | $ | 35.06 | | | | | $ | 0.00 | | |
Name and Address
|
| |
Number of Shares
Beneficially Owned |
| |
Percentage of Common
Stock Outstanding |
| ||||||
5% Stockholders | | | | | | | | | | | | | |
BlackRock, Inc.(1)
|
| | | | 3,120,525 | | | | | | 11.77% | | |
ArrowMark Colorado Holdings LLC(2)
|
| | | | 1,576,787 | | | | | | 5.95% | | |
Renaissance Technologies LLC(3)
|
| | | | 1,532,200 | | | | | | 5.78% | | |
The Vanguard Group(4)
|
| | | | 1,488,768 | | | | | | 5.61% | | |
Dimensional Fund Advisors LP(5)
|
| | | | 1,349,765 | | | | | | 5.09% | | |
Named Executive Officers and Directors | | | | | | | | | | | | | |
Michael Steib(6)
|
| | | | 593,542 | | | | | | 2.24% | | |
Gillian Munson(7)
|
| | | | 295,928 | | | | | | 1.12% | | |
Nic Di Iorio(8)
|
| | | | 201,063 | | | | | | * | | |
Paul Bascobert(9)
|
| | | | 96,770 | | | | | | * | | |
Charles Baker
|
| | | | 53,778 | | | | | | * | | |
Diane Irvine
|
| | | | 25,278 | | | | | | * | | |
Jan Hier-King
|
| | | | 7,500 | | | | | | * | | |
Barbara Messing
|
| | | | 29,778 | | | | | | * | | |
Peter Sachse
|
| | | | 27,778 | | | | | | * | | |
Michael Zeisser
|
| | | | 55,278 | | | | | | * | | |
All Directors and Executive Officers as a group (10 persons)
|
| | | | 1,386,693 | | | | | | 5.23% | | |
| | |
Page
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ARTICLE I
|
| | ||||||||
The Merger
|
| | ||||||||
| | | | A-9 | | | | |||
| | | | A-9 | | | | |||
| | | | A-10 | | | | |||
ARTICLE II
|
| | | | ||||||
Effects of the Merger
|
| | | | ||||||
| | | | A-10 | | | | |||
| | | | A-10 | | | | |||
| | | | A-10 | | | | |||
| | | | A-10 | | | | |||
| | | | A-10 | | | | |||
| | | | A-10 | | | | |||
| | | | A-11 | | | | |||
| | | | A-13 | | | | |||
| | | | A-14 | | | | |||
ARTICLE III
|
| | | | ||||||
Representations and Warranties of the Company
|
| | | | ||||||
| | | | A-14 | | | | |||
| | | | A-15 | | | | |||
| | | | A-15 | | | | |||
| | | | A-16 | | | | |||
| | | | A-16 | | | | |||
| | | | A-17 | | | | |||
| | | | A-18 | | | | |||
| | | | A-18 | | | | |||
| | | | A-18 | | | | |||
| | | | A-18 | | | | |||
| | | | A-19 | | | | |||
| | | | A-20 | | | | |||
| | | | A-20 | | | | |||
| | | | A-22 | | | | |||
| | | | A-23 | | | | |||
| | | | A-24 | | | | |||
| | | | A-25 | | | | |||
| | | | A-25 | | | | |||
| | | | A-25 | | | | |||
| | | | A-25 | | | |
| | |
Page
|
| | |||||
| | | | A-26 | | | | |||
| | | | A-26 | | | | |||
| | | | A-26 | | | | |||
ARTICLE IV
|
| | | | ||||||
Representations and Warranties of Parent and Merger Sub
|
| | | | ||||||
| | | | A-26 | | | | |||
| | | | A-27 | | | | |||
| | | | A-27 | | | | |||
| | | | A-27 | | | | |||
| | | | A-28 | | | | |||
| | | | A-28 | | | | |||
| | | | A-28 | | | | |||
| | | | A-29 | | | | |||
| | | | A-29 | | | | |||
| | | | A-29 | | | | |||
| | | | A-30 | | | | |||
| | | | A-30 | | | | |||
| | | | A-30 | | | | |||
ARTICLE V
|
| | | | ||||||
Covenants
|
| | | | ||||||
| | | | A-31 | | | | |||
| | | | A-34 | | | | |||
| | | | A-37 | | | | |||
| | | | A-38 | | | | |||
| | | | A-38 | | | | |||
| | | | A-40 | | | | |||
| | | | A-41 | | | | |||
| | | | A-41 | | | | |||
| | | | A-43 | | | | |||
| | | | A-43 | | | | |||
| | | | A-45 | | | | |||
| | | | A-45 | | | | |||
| | | | A-46 | | | | |||
| | | | A-48 | | | | |||
| | | | A-49 | | | | |||
| | | | A-49 | | | | |||
| | | | A-49 | | | | |||
| | | | A-49 | | | |
| | |
Page
|
| | |||||
ARTICLE VI
|
| | | | ||||||
Conditions
|
| | | | ||||||
| | | | A-49 | | | | |||
| | | | A-50 | | | | |||
| | | | A-50 | | | | |||
| | | | A-51 | | | | |||
ARTICLE VII
|
| | | | ||||||
Termination
|
| | | | ||||||
| | | | A-51 | | | | |||
| | | | A-51 | | | | |||
| | | | A-51 | | | | |||
| | | | A-52 | | | | |||
| | | | A-52 | | | | |||
ARTICLE VIII
|
| | | | ||||||
General Provisions
|
| | | | ||||||
| | | | A-54 | | | | |||
| | | | A-54 | | | | |||
| | | | A-54 | | | | |||
| | | | A-55 | | | | |||
| | | | A-55 | | | | |||
| | | | A-56 | | | | |||
| | | | A-57 | | | | |||
| | | | A-58 | | | | |||
| | | | A-58 | | | | |||
| | | | A-58 | | | | |||
| | | | A-64 | | | | |||
| | | | A-64 | | | | |||
| | | | A-65 | | | | |||
| | | | A-65 | | | | |||
| | | | A-65 | | | |