Private equity firms have swooped up web hosting and domain registry company Go Daddy Group for $2.25 billion.
The acquirers include KKR & Co., Silver Lake Partners and Technology Crossover Ventures. The hope is to expand the company internationally, make more partnerships, acquire other companies, and recruit talent, said Bob Parsons, chief executive and founder, in an interview with the Los Angeles Times. The deal is part of a trend of heightened merger and initial public offering activity in the tech industry. Silver Lake recently sold Skype Global to Microsoft for $8.5 billion after buying it from eBay for $2 billion two years ago.
Go Daddy, known for its sexy TV commercials like the one above featuring bikini-clad Go Daddy Girls, leads the industry in domain name registration. It is also expanding to other services like web hosting and online marketing. From 2009 to 2010, the company’s sales grew 25 percent to $947 million. The Scottsdale, Ariz.-based company expects 2011 revenues to be $1.1 billion.