A big moment in the website-builder world came in February when Newfold Digital was formed. Assembled from the combined assets of Endurance and Web.com, it created a new giant in SMB web services. It all came about through an elaborate web of private equity maneuvering that we examined at the time.
A few months after that revelation, Newfold Digital now officially launches and flips on the open-for-business sign. As part of this moment, it’s also taking the chance to roll out new branding through an employee-created logo (shown above). Altogether it marks the occasion that Newfold is a new powerhouse in SMB web services.
“Newfold Digital’s success as a business comes from the synergy of our people, customers and brands,” CEO Sharon Rowlands told Localogy Insider. “Vishnu Pradeepan’s concept for the logo ties these elements together beautifully, and the design resonates with our employees, whose energy, talent and forward-thinking mindset differentiate Newfold from other providers in the market.”
Beyond branding, Newfold is primed for SMB market penetration through its broad suite of services. This gives it a few advantages including operational economies of scale, and one-stop-shop bundling for SMBs. This resonates with time-starved SMBs, and engenders greater retention and ARPU for Newfold.
Specifically, some of its brands include household names in web services such as Bluehost, Domain.com, HostGator, Network Solutions, Register.com and Web.com. Beyond product strengths, Newfold emphasizes its sales approach and personal touch to SMBs. Its SMB-focus and aptitude can’t be underestimated.
As part of this sales approach, it will offer a range of collaborative support to accommodate SMB personas. That includes DIY offerings, DIFM (do it for me) and everything in between. Not only are SMBs varied along this sliding scale, but web services themselves can vary in their onboarding and management rigor.
All of this has been the master plan for Newfold, stemming from the corporate maneuvering that birthed the company, as noted above. Aligned with the private equity playbook, the rollup of Endurance and Web.com creates some operational and economic advantages, including the synergistic bundle examined above.
Another driver for Newdfold’s creation, as we examined in a recent roundtable (see below), was to reformulate these companies and give them the breathing room to do what they need to do. In a maturing, though still opportune, sector like web services, private markets are a more forgiving place to restructure and reposition.
“These companies have been public for a while,” Progress Partners’ Chris Legg told me. “When you see something go private, it’s a sign of a maturing industry. It’s cash-flow positive and can be taken out of the window of public markets, better optimized privately. Consolidate them to make them much more efficient.”
Meanwhile, this marks Day 1 of the Newfold’s operational lifecycle. We’ll be watching closely as all of the above unfolds and as the company makes its mark on the web-services competitive landscape.