GoDaddy To Buy Host Europe Group In $1.79 Bln Deal

(RTTNews) - GoDaddy Inc. (GDDY) said Tuesday that it agreed to acquire Host Europe Group for 1.69 billion euros or US$1.79 billion, including 605 million euros paid to the selling shareholders and 1.08 billion euros in assumed net debt.

The purchase price represents about 11x HEG's 2016 estimated adjusted EBITDA including anticipated annual synergies.

The transaction has been approved by the GoDaddy board of directors and Host Europe Group or HEG's shareholders and is expected to close in the second quarter of 2017, subject to customary regulatory and other closing requirements.

HEG is currently owned by Cinven, one of Europe's leading private equity firms, which acquired the business in August 2013.

GoDaddy intends to integrate the majority of HEG's business while exploring strategic alternatives for HEG's PlusServer managed hosting business, including a possible sale.

Patrick Pulvermüller, Group CEO of HEG, will lead the combined company's European operations. He will report to Andrew Low Ah Kee, GoDaddy's Executive Vice President of International. GoDaddy's European team will report into Pulvermüller.

HEG also owns the World Hosting Day and NamesCon brands and conferences, mainstays in the global website hosting and domain communities. GoDaddy will continue to operate these brands independently and invest in their continued growth.