The acquisition will help GoDaddy expand into Europe. HEG is one of Europe's largest webhosting firms, with 1.7 million customers on the continent, and over 7 million domains. HEG was previously bought out by European private equity firm Cinven Ltd. for €520 million in 2013.
GoDaddy Chief Executive Blake Irving said in an interview with Reuters that the deal will give GoDaddy a five-year jump in Europe.
In a press release he stated: "HEG has built an impressive business that generates strong top-line growth, high margins, and industry-leading customer satisfaction. By joining forces with HEG, we accelerate our expansion into Europe with the delivery of a broader range of cloud-based products, built on a single global technology platform, and supported by unparalleled customer care to help small businesses and web designers succeed online."
GoDaddy generates revenue outside of traditional domain hosting, with services such as SEO optimization and online marketing, and could grow quickly if it extends these services to HEG's customer base.
GoDaddy said HEG was expected to generate about $328 million in bookings and about $139 million in adjusted EBITDA in 2016.