Web Hosting Company GoDaddy Sold for $2.25B to Private Equity Firms
Internet domain registrar, Web hosting company, and SSL Security Certificates provider GoDaddy has been sold to a consortium of private equity firms in a deal reportedly worth $2.25 billion.
The company, which grew by 25 percent to $947 million from 2009 to 2010, and which has been expecting 2011 revenues to hit $1.1 billion after managing more than 48 million domain names and 9.3 million customers, will now enter into a strategic partnership with venture capitalists KKR & Co., Technology Crossover Ventures, and Silver Lake Partners. GoDaddy follows in the footsteps of Groupon, Zynga, and Skype as the latest in Silver Lake Partners’ series of technology investments.
“I’ve always said we would make a move like this when the right deal with the right partners could help us do the right thing for our customers and our employees,” said Go Daddy CEO and Founder Bob Parsons in a press release. “This is it! We are partnering with KKR, Silver Lake and TCV because of their technology expertise, their understanding of Web-based businesses and because their values align with ours.”
Parsons will remain as a GoDaddy shareholder with a minority stake in the firm. The company’s primary endorser, IndyCar and NASCAR racer Danica Patrick, who has been featured in GoDaddy’s famous Super Bowl ads, will also continue to be sponsored by the company.
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