GoDaddy Inc. ( GDDY Quick Quote GDDY - Free Report) recently announced that it has agreed to acquire Poynt, a payments processor firm, for a total amount of $365 million. Per the deal, GoDaddy will pay $320 million in cash, while the remaining $45 million will be paid in deferred cash payments, subject to meeting performance and employment conditions over a three-year period. The transaction is expected to close in first-quarter 2021, subject to the receipt of all regulatory approvals. Post the deal closure, Osama Bedier, the CEO of Poynt, will join the GoDaddy team and report to Bhutani as the head of a newly created Commerce Division. The deal will definitely expand GoDaddy’s commerce offerings and provide it an edge over its competitor, Shopify. About Poynt
Founded in 2013, California-based Poynt is a payments processor firm. It enables businesses to sell and accept payments anywhere through its suite of products. It offers contactless in-store terminals, and online and phone payment acceptance technology.
Currently, Poynt’s technology is used by more than 100,000 merchants. How Poynt Will Benefit GoDaddy
Following the deal completion, GoDaddy will integrate Poynt's services into its Websites + Marketing and WordPress commerce services.
This integration will enable small businesses to connect commerce experiences across various channels. This means that GoDaddy’s customers will soon be able to rely on a single platform for using the complete suite of commerce and payment services. Nowadays, people prefer online purchases of essential supplies, which in turn, are amplifying demand for the digital payments market. The payments industry has been shifting to the electronic mode over the recent years, given the proliferation of technology. The coronavirus episode will only expedite this transition. Given this fact, offering combined services certainly presents the company with a significant revenue generating opportunity. Therefore, the latest deal will help GoDaddy expand commerce services with integrated payments. Aman Bhutani, the CEO of GoDaddy said that the deal will accelerate GoDaddy's efforts to "provide a complete suite of commerce and payment services to address this critical customer need and focus on a large addressable market opportunity." Zacks Rank & Stocks to Consider
Currently, Box carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include
The Trade Desk Inc. ( TTD Quick Quote TTD - Free Report) , Dropbox, Inc. ( DBX Quick Quote DBX - Free Report) and Inuvo, Inc. ( INUV Quick Quote INUV - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see . the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here Long-term earnings growth for The Trade Desk, Dropbox, and Inuvo is currently projected at 25%, 40.9% and 30%, respectively. These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early. See the 5 high-tech stocks now>>