GoDaddy is one of the leading web hosting services & Internet domain registrar and recently it has announced to acquire California-based all in one payment processing platform, Poynt Corporation in a deal worth USD 365 million.
According to Business insider, GoDaddy will carry out this acquisition in two parts; first, the company will pay USD 320 million in cash upfront at closure and the remaining USD 45 million will be paid in the form of deferred cash payments over the period of three years, based on certain performance and employment conditions.
Silicon Valley-based Poynt is a smart payment platform that runs on PoyntOS as the standard open operating system that can power any smart payment terminal around the globe.
According to company profile on CrunchBase, Poynt has raised total funding worth USD 133 million in over 4 funding rounds and is backed by Kevin Milden- Interface designer at Apple Inc., Atlanta-based Elavon, National Australia Bank and Oak HC/FT as its recent investors that participated in the company’s latest Series C funding round that concluded in February 2019.
What is in this acquisition that benefits GoDaddy? The internet domain and web hosting service platform has been planning to expand its operations to commercial services with integrated payments and Poynt, with its existing userbase and all-in-one integrated smart payments system will take GoDaddy ten steps closer to its goal.
Aman Bhutani, CEO, GoDaddy commented on this acquisition saying that commerce is important to the company’s customers and GoDaddy continuously invests in building a seamless and intuitive experience that enables SMEs to sell anywhere at their will. He further added, Poynt accelerates this strategy and will complete the package of commerce and payment services to address the needs of the customers and capitalise on addressable market opportunity, as reported by Business Insider.
COVID-19 has boosted digitisation in many economies around the globe and with this rapid acceleration of internet usage and pandemic-imposed lockdowns, e-commerce and overall online shopping has witnessed exponential growth. Therefore, GoDaddy and other businesses see this as an opportunity to capitalise on this digital potential.
In today’s times, it is highly necessary for e-commerce businesses to seamlessly integrate online and offline shopping experience and ensure 100% customer satisfaction.
Poynt’s acquisition by GoDaddy is aimed to feed on similar motives as mentioned by the company. This integration of web hosting services with payment services, e-commerce services and WordPress shall enable Small and Medium businesses to boost their sale figures and customer satisfaction by creating a seamless and unified shopping experience for customers.