U.S. based website domain name provider GoDaddy said it is in the process to buy Host Europe Group(HEG) for €1.69bn ($1.82 bn). The deal includes €605m ($643.39m) paid to the selling shareholders and €1.08bn ($1.15bn) in assumed net debt.
HEG is currently owned by Cinven,a private equity firm based in London, which acquired the business in August 2013 for $666m. The deal between Cinven and GoDaddy for HEG is expected to close in second quarter of 2017.
GoDaddy will integrate the majority of HEG’s business as they serve in the same field. So, Patrick Pulvermüller will lead the combined company’s European operations. HEG has offices in Germany, the U.K., France, Spain, Romania, and Bulgaria serving more than 1.7 million customers.
Cinven is a private equity firm founded in 1977 with offices in 9 international locations (Guernsey, London, New York, Paris, Frankfurt, Milan, Luxembourg, Madrid, and Hong Kong). Cinven invests in six sectors globally: Business Services; Technology, Media and Telecommunications; Financial Services; Industrials; Healthcare; and Consumer.
In 2014, it had €11.5 ($ 14.4) billion in assets under management. Cinven’s funding base originally came solely from three UK pension funds (British Coal, the Railway Industry and Barclays Bank) who remain as important investors.
About Host Europe Group
HEG is privately held Internet domain registrar and web hosting company headquartered in Middlesex, England. It was founded in 1997.
It is Europe’s largest privately owned hosting provider and largest domain registrar in the UK. It currently owns 7 data center facilities in Europe and USA, supported by over 1,000 employees. HEG has more than 1.7 million customers with over 7 million domain names under management. This makes HEG Europe’s second largest hosting provider.
GoDaddy is a publicly traded Internet domain registrar and web hosting company. As of January 2016, GoDaddy is said to have more than 61 million domain names under management, making it the world’s largest ICANN-accredited registrar. In addition to domain registration and hosting, GoDaddy also sells e-business related software and services.
GoDaddy was founded in 1997 by Baltimore, Maryland entrepreneur Bob Parsons.