We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
GoDaddy May Buy Host Europe Group, Banks Keen to Finance
Read MoreHide Full Article
Leading domain registration and web hosting provider GoDaddy Inc. (GDDY - Free Report) is reportedly in talks to acquire Host Europe Group (HEG), a European web hosting provider.
Host Europe Group was purchased by private equity owner Cinven in 2013 for £438 million and since then has done well to evolve as Europe's largest independent web hosting firm.
Per a report from Reuters yesterday, 24 banks including Barclays, Deutsche Bank, Morgan Stanley and Royal Bank of Canada (RBC) are ready to debt finance this potential sale for $1.5 billion. It appears that Europe’s highly liquid loan market is eagerly waiting to grab the opportunity.
GoDaddy, backed by KKR and Silver Lake, has out bidden Warburg Pincus backed German Internet service provider United Internet, and Centerbridge while Deutsche Telekom and Permira had withdrawn from the bidding process last month.
If the deal materializes, financing could start before the end of this year.
The acquisition will significantly boost GoDaddy’s Hosting and Presence revenues. Last quarter, this business generated $174.1 million and accounted for 36.9% of total revenue. It grew 3.9% sequentially and 4.2% year over year. The company reported better-than-expected earnings and revenues in the last quarter. (See More: GoDaddy Beats Q3 Earnings and Revenue Estimates).
The acquisition will also help GoDaddy strengthen its foothold in the European market. Going forward, investments in products, its technology platform and customer care as well as delivery of innovative and increasingly personalized products and services globally should drive shareholder value.
Zacks Rank & Stocks to Consider
Currently, GoDaddy has a Zacks Rank #3 (Hold). Better-ranked stocks in the broader technology sector include NVIDIA Corporation (NVDA - Free Report) , Kimball Electronics, Inc. (KE - Free Report) and Control4 Corporation , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
For the current year, the consensus estimate for NVIDIA has increased 33.3% in the past 30 days. Estimates for Kimball Electronics and Control4 have gone up by 8.1% and 10%, respectively, over the same time frame.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
GoDaddy May Buy Host Europe Group, Banks Keen to Finance
Leading domain registration and web hosting provider GoDaddy Inc. (GDDY - Free Report) is reportedly in talks to acquire Host Europe Group (HEG), a European web hosting provider.
Host Europe Group was purchased by private equity owner Cinven in 2013 for £438 million and since then has done well to evolve as Europe's largest independent web hosting firm.
Per a report from Reuters yesterday, 24 banks including Barclays, Deutsche Bank, Morgan Stanley and Royal Bank of Canada (RBC) are ready to debt finance this potential sale for $1.5 billion. It appears that Europe’s highly liquid loan market is eagerly waiting to grab the opportunity.
GoDaddy, backed by KKR and Silver Lake, has out bidden Warburg Pincus backed German Internet service provider United Internet, and Centerbridge while Deutsche Telekom and Permira had withdrawn from the bidding process last month.
If the deal materializes, financing could start before the end of this year.
GODADDY INC-A Price
GODADDY INC-A Price | GODADDY INC-A Quote
Our Take
The acquisition will significantly boost GoDaddy’s Hosting and Presence revenues. Last quarter, this business generated $174.1 million and accounted for 36.9% of total revenue. It grew 3.9% sequentially and 4.2% year over year. The company reported better-than-expected earnings and revenues in the last quarter. (See More: GoDaddy Beats Q3 Earnings and Revenue Estimates).
The acquisition will also help GoDaddy strengthen its foothold in the European market. Going forward, investments in products, its technology platform and customer care as well as delivery of innovative and increasingly personalized products and services globally should drive shareholder value.
Zacks Rank & Stocks to Consider
Currently, GoDaddy has a Zacks Rank #3 (Hold). Better-ranked stocks in the broader technology sector include NVIDIA Corporation (NVDA - Free Report) , Kimball Electronics, Inc. (KE - Free Report) and Control4 Corporation , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
For the current year, the consensus estimate for NVIDIA has increased 33.3% in the past 30 days. Estimates for Kimball Electronics and Control4 have gone up by 8.1% and 10%, respectively, over the same time frame.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>