GWOP Report: GoDaddy.com to be Sold For $2 Billion

Private-equity firms KKR & Co. and Silver Lake Partners, along with a third investor, are nearing a deal to buy GoDaddy Group Inc., the closely-held company that registers Internet domain names, for between $2 billion and $2.5 billion, according to sources.

An announcement of the sale could come as early as next week, although a deal hasn’t been signed yet and the people cautioned that an agreement may not be reached.

Private equity and venture capital firm Technology Crossover Ventures is also a minority investor in the proposed deal for Scottsdale, Ariz.-based GoDaddy, one of the people familiar with the matter said.

The Wall Street Journal reported in September that the company had hired boutique investment bank Qatalyst Partners to shop the company to potential buyers.

GoDaddy.com, the company’s flagship web property, is the world’s largest registrar of domain names. The site also sells e-commerce, security and other services to people and businesses looking to manage their online presence. Customers pay GoDaddy monthly fees, which brings the company steady cash flow — an attraction for buyout firms.

GoDaddy was founded in 1997 by Bob Parsons, who continues to be the company’s owner and chief executive. It is known for its edgy advertising, including Super Bowl commercials and ads featuring different “Go Daddy Girls” including racing car driver Danica Patrick. Mr. Parsons would continue to be CEO, one of the people familiar said.

The sale process for the company was temporarily scuttled late last year when some potential bidders, including private-equity firms TPG Capital and General Atlantic, were told the auction was off, people familiar with the matter said at the time.
Read more: WSJ