GoDaddy Inc. (NYSE:GDDY) shares rose 3% on Tuesday after the company announced its largest-ever acquisition, a deal to buy Host Europe Group and combine the two companies’ internet-services businesses to help accelerate GoDaddy’s international expansion.
GoDaddy, which made its name, and still does, selling internet domain names, said it would pay $641mln to HEG’s owner—private-equity firm Cinven—and assume net debt of around $1.2bn.
Host Europe, a London-based company with similar offerings, comes with about 1.7mln customers, most of them in Germany and the U.K.
Just two days ago an insider at the Arizona-based vendor of website services sold some of her holdings in the business. Barbara J. Rechterman sold nearly 10% of her holdings. Rechterman disposed of 4,281 shares of GoDaddy’s stock in a transaction on December 2. The stock was sold at an average price of $33.69, for a total value of $144,226.89.
But the deal didn’t come as a total surprise to the market. News agency Reuters reported last month that GoDaddy was in exclusive talks to buy Host Europe.
GoDaddy shares were last up 3.1% at $35.81 on Tuesday – its session high.