GoDaddy divests managed hosting business as planned.
GoDaddy has entered into an agreement to sell PlusServer, a business it picked up in the Host Europe Group acquisition, for €397 million (USD $456 million). Funds advised by BC Partners are buying the business.
PlusServer is a managed hosting service that doesn’t fit into GoDaddy’s typical market segment of very small businesses. It announced that it planned to explore a sale of the business back when it struck the deal to acquire Host Europe Group (HEG).
To put the purchase price in perspective, GoDaddy paid $1.8 billion for HEG.
The company plans to use the money to pay off the bridge loan it took to complete the transaction.