In a latest report, U.S.-based website domain name provider, Godaddy Inc. announced on Tuesday that they will buy Peer Host Europe Group (HEG) for 1.69 billion Euros ($1.82 billion), including their debts. The reason behind this is to seek expansion of their already booming business.
It’s pretty obvious that this deal of buying HEG will not only merely expand their more profitable business of hosting websites for small businesses and consumers business in one nation but will also accelerate it towards the European nations.
Godaddy Chief Executive Officer Blake Irving in a statement stated that this deal will give Godaddy a “five-year jump in Europe”.
Talking about why the CEO of the buying firm called this deal a jump towards 5 years further. The reason why he said so is because HEG is one of the Europe’s largest “independent” web hosting firms and has big brands such as 123Reg, Domain Factory, Heart Internet and Host Europe operating under it.
Even Godaddy is not behind; the firm is well-known in the United States for its at times provocative TV marketing campaigns. It has also trumped bids from German Internet service provider “United Internet AG” and Deutsche Telekom AG for their firm.
Reuters reported this leak a month ago stating the news about Godaddy buying HEG but now it’s confirmed by both sides. Currently, the firm owning HEG is the European private equity firm Cinven Ltd [CINV.UL], which acquired their business in August 2013 for around 438 million pounds ($560 million).
Cinven was advised by Deutsche Bank for the deal, while Godaddy was advised by Greenhill to do so. Banks including Barclays, Citigroup, Deutsche Bank and RBC are the mediators or the liners of the deal.