Web host
GoDaddy has agreed to sell ‘PlusServer’. GoDaddy, which has headquarters in Scottsdale, Arizona, United States, is recognized as one of the world’s largest providers of hosting and domain names. The company specializes in offering SMEs and startups the tools they need for an effective web presence and it has a presence in many countries around the world. PlusServer is a remnant of GoDaddy’s acquisition of Host Europe Group (HEG).
Cologne, Germany-based PlusServer is a managed hosting service offering ecommerce solutions like Magento and a range of ‘Shopware’. The company also offers content and marketing options alongside media and streaming services. It has never been a natural fit for GoDaddy’s suite of offerings and the company suggested its intention to sell PlusServer when at the time of the HEG purchase. BC Partners have agreed to acquire PlusServer for €397 million ($455 million).
BC Partners is a “leading private equity firm with advised funds of €12.6 billion ($16.4 billion)”. Established in 1986, the company has been involved in Europe’s buy-out market over the last 25 years. It has a strong focus on technology, and PlusServer fits its portfolio well. With 300 employees, PlusServer earned €100 million ($155 million) in 2016. The sales will be completed by August pending regulatory approval and the revenue generated will be used by GoDaddy to repay a bridge loan.
“The sale is consistent with the company's stated intent to explore strategic alternatives for the PlusServer business, which GoDaddy acquired as part of the Host Europe Group (HEG) acquisition,” explained a GoDaddy press release. “PlusServer has been treated as an asset for sale since the HEG acquisition closed in April 2017. GoDaddy intends to repay its €500 million bridge loan with the proceeds from the PlusServer sale and cash on hand,” the statement concluded.
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