Endurance Int'l (EIGI) Updates on Restructuring Plan

Endurance Int'l (NASDAQ: EIGI) disclosed the following on Wednesday:

Item 2.05. Costs Associated with Exit or Disposal Activities

On February 10, 2016, Endurance International Group Holdings, Inc. (the “Company”) announced a restructuring plan in connection with its acquisition of Constant Contact, Inc. The plan, which is expected to consist primarily of workforce reduction and facilities consolidation, is intended to integrate and streamline operations across the combined companies.

These actions are expected to require a restructuring charge estimated at approximately $18 million to $22 million. A significant majority of the charge is expected to occur in the first quarter of fiscal year 2016, with the remainder expected to occur by the end of the third quarter of fiscal year 2016. The charge is expected to consist of approximately $10 million in severance and related benefits, plus $8 million to $12 million in facility exit costs. The severance and related benefits and facility exit costs are cash costs, of which we estimate approximately $14 million to $15 million will be paid during fiscal year 2016, with the balance to be paid over the term of certain leases through fiscal year 2022. The Company may take additional non-cash charges for impairment of certain facility-related fixed assets; however, the amount of any such charges has not been determined.

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