GoDaddy acquires HEG; 2nd acquisition in two days

After acquiring WP Curve, GoDaddy Inc. has now entered into a definitive agreement to acquire Host Europe Group (HEG) for $1.79 billion. The transaction has been approved by the company’s board of directors and HEG’s shareholders and is expected to close in the second quarter of 2017.

“HEG has built an impressive business that generates strong top-line growth, high margins, and industry-leading customer satisfaction. By joining forces with HEG, we accelerate our 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,” said Blake Irving, CEO, GoDaddy.

HEG serves small businesses and web experts, and has built a thriving business with more than 1.7 million customers. With strong positions in the UK and Germany, including brands such as 123Reg, Domain Factory, Heart Internet and Host Europe, the company complements GoDaddy’s leading position in the US and fast-growing international footprint. GoDaddy intends to integrate the majority of HEG’s business while exploring strategic alternatives for HEG’s PlusServer managed hosting business, including a possible sale. Combining GoDaddy’s global technology platform with HEG’s footprint in Europe will enable the rapid deployment of a broader range of products to customers and allow for better scale of product development and go-to-market investments across both companies. “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, 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,” he added.

HEG today includes the PlusServer brand which serves larger, more mature companies that require a dedicated field sales force and account management. PlusServer is a high-quality business with a strong financial profile and world class management team. The company intends to explore strategic alternatives for the PlusServer business, which is expected to generate approximately $92 million in bookings and $41 million in adjusted EBITDA in 2016. GoDaddy will continue to operate HEG’s brands independently and invest in their continued growth.