GoDaddy (GDDY) has announced that it has entered into a definitive agreement with Neustar to buy its Registry business. Financial details of the agreement were not disclosed.
The Neustar Registry business includes an extensive portfolio of top-level domains, including .biz, .co, .in, .nyc and .us, and supports more than 215 TLDs (top-level domains) and approximately 12 million domains. It also includes Neutstar’s Managed Registry Services business that provides end-to-end registry management for over 130 brand TLDs and 70 generic TLDs.
SunTrust Robinson analyst Naved Khan sees three main positives from the acquisition- diversification, price control and innovation. He explains “We believe the acquisition further diversifies GoDaddy’s Domains business by enabling it to tap into the wholesale market for country code TLDs (cc TLDs), which we view as an additional vector of growth (registrar and aftermarket being the other two).” He left his $84 price target on GoDaddy unchanged.
In fact, analysts show a unanimously positive sentiment over GDDY stock. Ten out of ten analysts polled by TipRanks in the last three months rate GoDaddy a ‘buy.’ Meanwhile the average analyst price target suggests upside potential of just over 30% from current levels. (See GDDY’s stock analysis on TipRanks).
The new service will be called GoDaddy Registry and will be led by Nicolai Bezsonoff, currently Senior Vice President and General Manager of Neustar’s Registry business. As part of the transaction, GoDaddy will also strictly adhere to a governance model that maintains independence between the GoDaddy registry and registrar businesses.
“The Neustar Registry business features a high-performance backend registry technology platform and enhanced domain security systems that enable people and brands to seamlessly connect and transact online with speed, security and reliability” states the press release.
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