US based web host and domain registrar GoDaddy has today announced the sale of its PlusServer business unit to funds advised by private equity firm BC Partners in a deal worth a reported USD 456 million. PlusServer was originally part of the Host Europe Group registrar, which GoDaddy had purchased for a total of USD 1.8 billion in December 2016.
According to company sources, GoDaddy’s plan had always been to divest the PlusServer brand, as its business model starkly differs from that of GoDaddy’s. PlusServer caters to large scale, established enterprises that require a dedicated field sales force and full-time account management, which is in contrast to GoDaddy’s traditional market audience of medium and small businesses. GoDaddy says they are exploring strategic alternatives to replace PlusServer’s managed hosting business.
The deal is expected to close by the end of August. As part of the sale, PlusServer will assume liabilities of around USD 27 million and maintain the existing cash on its balance sheet of USD 13.9 million.
The proceeds of the PlusServer sale are destined to be used by GoDaddy towards repaying a sizable portion of the USD 578 million bridge loan the company had borrowed last year in order to finance its Host Europe Group takeover.