GoDaddy's latest acquisition will strengthen its hold in Europe

GoDaddy's latest acquisition will strengthen its hold in Europe

Posted by Vivek Nama on December 7th 2016

GoDaddy this week announced that it has acquired a start-up- Host Europe Group which provides WordPress services like SEO, security, WP Curve & other services with an aim to expand their list of services. The cloud platform giant has announced that it is going to acquire Host Europe Group for €1.69 billion (US$1.79 billion), including €605 million paid to the selling shareholders and €1.08 billion in assumed net debt.
 
HEG is owned by an international private equity firm Cinven, which acquired the company in August 2013. With the acquisition GoDaddy aims to integrate the HEG’s business while exploring strategic alternatives for HEG’s PlusServer managed hosting business, including a possible sale, said GoDaddy.
 
With this acquisition of HEG which has about 1.7 million customers across Europe with over 7 million domains under their radar on the other hand, GoDaddy recent quarter reports 14.5 million customers and manages over 63 million domains is defiantly going to boost GoDaddy’s growth in Europe. Overall GoDaddy reported $129.2 million in international revenue, which has been only growing year after year and so are its global expansions.
 
GoDaddy has successfully expanded its international business to 56 global markets over the past four years, and by  acquiring  HEG, would accelerate its expansion into Europe with the delivery of a broader range of cloud-based products, built on a single global technology platform, and supported by unparalleled customer care to help small businesses and web designers succeed online.
 
“In combining with GoDaddy, we see a remarkable opportunity for our customers, partners and the small business ecosystem in Europe,” said Patrick Pulvermüller, Group CEO of HEG. “What stands out is the strategic alignment of the companies – we’re both driven to empower people to transform their ideas and bring them to life online. Together GoDaddy and HEG will provide even more value for our customers and introduce new solutions to help their ventures succeed and with the additional services to HEG’s customer base, GoDaddy is going to sweep through Europe and increase their revenue faster than planned.

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