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GoDaddy has branched into the more profitable business of
hosting websites for small businesses and consumers and the HEG
deal will help it accelerate this shift as well as broaden its
customer base in Europe.
HEG, whose customer base is similar to GoDaddy's, is one of
Europe's largest independent web hosting firms, and operates
brands such as 123Reg, Domain Factory, Heart Internet and Host
Europe.
HEG is currently owned by European private equity firm Cinven
Ltd [CINV.UL], which acquired the business in August 2013 for
438 million pounds.
GoDaddy also said it would explore options for HEG's PlusServer
managed hosting business, including a possible sale.
GoDaddy, well-known in the United States for its sometimes
outrageous TV marketing campaigns, trumped bids from German
Internet service provider United Internet AG <UTDI.DE> and
Deutsche Telekom AG <DTEGn.DE> for HEG.
Reuters had reported last month that GoDaddy was in exclusive
talks to buy the company.
(Reporting by Narottam Medhora in Bengaluru; Editing by Anil
D'Silva and Savio D'Souza)
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