Go Daddy, the world's largest registrar of domains, has been sold to a group of private equity firms. Reuters previously reported a few hours ago that the company was in talks to be sold. The Los Angeles Times, however, now says the company has been bought for $2.25 billion by three private equity firms. The three firms are identified as KKR & Co., Silver Lake Partners and Technology Crossover Ventures (TCV). The firms will assume the company's debt as part of the deal.
"What these guys see is a company with a lot more potential internationally and more potential to make partnerships and acquisitions," Bob Parsons, Go Daddy's chief executive and founder said. The investment group is excited about the growth potential of Go Daddy's web hosting and other services, a source close to the negotiations said. Qatalyst Partners served as the exclusive advisor to Go Daddy in connection with the transaction.
From 2009 to 2010 the company grew 25%, resulting in a sales revenue of almost $950 million. The company projects a sales revenue of over $1 billion this year. Silver Lake, the former owner of Skype Global, sold Skype Global to Microsoft. TCV led a $135 million investment in Facebook, KKR and Silver Lake helped Avago Technologies go public in 2009 after buying it in 2005.
Image Courtesy of: LA Times