RBC's positive commentary was primarily driven by GoDaddy's announcement to acquire peer company, Host Europe Group, for approximately $1.8 billion.
Freshfields Bruckhaus Deringer and Wilson Sonsini Goodrich & Rosati have taken lead roles on private equity firm Cinven's sale of web services provider HEG to United States competitor GoDaddy for €1.69bn (£1.44bn). Now, GoDaddy Inc is going to come up with a two sided approach, where apart from simply buying the HEG services, the American company will also use HEG PlusServer for managing its hosting business.
GoDaddy purchased Host Europe on Tuesday for $1.79 billion. HEG, the largest privately-owned web services provider in Europe, isa conglomerate that owns WorldHostingDays - and will thus own NamesCon as well when the deal closes.
GoDaddy CEO Blake Irving spoke about the acquisition:"GoDaddy has successfully expanded its worldwide business to 56 global markets over the past four years".
"HEG has built an impressive business that generates strong top-line growth, high margins, and industry-leading customer satisfaction".
Combining GoDaddy's global technology platform with HEG's footprint in Europe will enable the rapid deployment of a broader range of products to customers and allow for better scale of product development and go-to-market investments across both companies.
HEG's chief executive, Patrick Pulvermuller, will lead European operations of the combined company.
The fully committed debt financing from existing lenders will include a US$1.377bn-equivalent incremental term loan, split into a dollar-denominated tranche and a euro-denominated tranche.
Arizona-based GoDaddy is the world's largest website hosting services provider with more than 61 million domain names under management.