On Tuesday, the world’s largest US-based hosting provider Godaddy Inc announced its buying another provider, Host Europe. As the name says, this company led its activity in the European region, that’s why it’s so precious for GoDaddy. According to the words of GoDaddy’s representatives, the company is looking for expanding on the European market as well. This purchase allows them growing their customer base with the EU-based websites.
GoDaddy Chief Executive Blake Irving claimed that the sum of deal equals 1.69 billion euros. He also announced his company’s 5-year strategy to grow in Europe.
The market reacted to this news quickly. The share price of GoDaddy Inc. grew 2.2%. It can be explained due to the fact that Host Europe is considered to be the largest European hosting company. It has such brands as Domain Factory, Heart Internet, 123Reg and Host Europe in its portfolio. It is owned by the private firm Cinven Ltd. Host Europe was acquired by this company for about $560 million in August 2013. According to Blake Irving, GoDaddy planned to buy Host Europe yet in 2013 too, but the integration plans didn’t let the deal happen.
The combined company will be operated by the current Host Europe chief executive Patrick Pulvermuller. GoDaddy doesn’t reveal their planned first steps to rule this business, but their closer attention will be pointed to one of the Host Europe products, PlusServer. It’s a managed hosting services business. The GoDaddy CEO claims that his company will be looking for various options, including its sale.
It’s worth mentioning that Host Europe was planning to generate about $139 million in EBITDA and about $328 million in orders in 2016.