GoDaddy sold for $2.25 billion
Major global domain registrar and Web hosting – the company GoDaddy Group – and two investment funds Technology Crossover Ventures and KKR & Co, Silver Lake Partners recently signed an agreement under which the company will be sold for 2.25 billion dollars . Officially, the announcement of the deal to be done already a few days ago.
Terms of the deal are such that the founder of GoDaddy and CEO Bob Parsons should be retained a minority stake in the company. According to sources close to the customers, the main specialization of the three funds – a work in telecommunications and high technology. GoDaddy employees themselves say that one of the factors that decided the fate of the deal, it was the technical expertise of the three “monsters”. According to experts, at the very GoDaddy now has all the resources to generate stable cash flow, which means he is able to independently pay all its obligations to its employees as well as on the market. And in the investment funds say they intend to invest in GoDaddy after closing another n-th sum of money and thereby expand the scope of the company.
Recall that at present the company GoDaddy – this is the largest operator of a number of different servers that cater to projects of its clients. The company also manages more than 48 million domain names . At the moment, it can give the user a wide range of different web hosting services from the five-dollar-mail server to complex web projects costing up to tens of thousands of dollars per month. An interesting fact is that prior to the investment fund Silver Lake owned company Skype, now bought by Microsoft, now he is the owner, Avaya. TCV funds and KKR is also enough to do large IT acquisition.
Specialists, IDC noted that this investment will allow the company to GoDaddy to buy new equipment and thereby upgrade their network capacity, offering the most demanding business customers and increasing their base. It should say that Bob Parsons, who founded the company, GoDaddy, had already had its own experience of business – back in 1984 , the company he founded Parsons Technology , which was engaged in programming in order. Ten years later, in 1994, the company acquired another company Intuit Inc. for $ 64 million. In 2011, revenue GoDaddy, experts predict the company will reach $ 1.1 billion. If we compare this figure to 2005, but before he was about 140 million, but for 4 years, until 2005, this company has suffered losses.