Endurance International Group has adopted a plan to transition the role of Chief Executive Officer from founder Hari Ravichandran to a new CEO, the company has announced. Endurance’s Board of Directors and Ravichandran have decided that he will continue as a Board member and CEO while international executive search firm Heidrick & Struggles assists the company in the search for a new CEO.
Ravichandran founded Endurance in 1997, and led the company through its IPO in 2013, and its $1.1 billion acquisition of Constant Contact in 2015. Endurance is seeking to replace him with an executive who has a breadth of experience growing complex organizations.
“The Board thanks Hari for his vision and the entrepreneurial spirit that led to Endurance’s growth into the global family of web service providers it is today,” James C. Neary, Chairman of the Board of Directors, Endurance International Group said in a statement. “The Board and Hari have been engaged in a dialogue over an extended period of time about an eventual transition of his leadership, and will work together to bring on a CEO who can take Endurance to the next level.”
The succession planning process has been sped up due to the business’ significant expansion, its focus on free cash flow generation and risk management, and its previously disclosed SEC investigation into non-GAAP accounting practices, according to the announcement.
“When I started Endurance over 20 years ago, I never imagined the joys, challenges, and learnings that would come from travelling the entrepreneurial road. Today, I’m proud to say we have more than 4,000 talented employees working on behalf of five million subscribers to our services around the world who rely on Endurance for their online presence,” said Ravichandran. “My number one priority has always been to do what is best for Endurance, our employees and our shareholders, and I am pleased that the Board and I are aligned on the qualities our next CEO needs. I look forward to working with my fellow Board members to identify a successor who can continue to drive growth by powering small businesses worldwide.”
Endurance also confirmed its previously announced guidance for 2017 GAAP revenue, adjusted EBITDA and free cash flow. The company expects a four to five percent increase in revenue from its reported GAAP revenue of $1.111 billion, a 12 to 14 percent increase in its adjusted EBITDA, and a 35 percent decrease in free cash flow.