Internet domain registrar and web hosting company GoDaddy Inc. (GDDY) revealed that it has entered into a definitive agreement to acquire Pagely, a premium managed WordPress hosting platform. The financial terms of the deal have been kept under wraps.
Following the news, shares of the company gained marginally to close at $70.95 on Friday.
Implications of the Deal
With Pagely’s leading WooCommerce SaaS platform coupled with its extensive expertise in platform and cloud, GoDaddy plans to serve its customers with more reliability, security and efficiency.
Notably, WooCommerce is the world’s primary open-source e-commerce software with 94% of WordPress e-commerce stores built using the platform.
Management Commentary
The President of GoDaddy Commerce, Osama Bedier, said, “Pagely possesses the platform, expertise and reputation to help us extend that mission to the WooCommerce ecosystem, creating the next generation of managed commerce.”
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Price Target
Recently, Citigroup analyst Nicholas Jones reiterated a Buy rating on the stock. The analyst, however, raised the price target from $105 to $110, which implies upside potential of 55% from current levels.
The Wall Street community is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on 3 Buys and 3 Holds. The average GoDaddy price target of $93.33 implies that the stock has upside potential of 31.5% from current levels. Shares have declined 4.6% over the past year.
TipRanks Website Traffic
TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into GoDaddy’s performance this quarter.
According to the tool, the GoDaddy website recorded a 17.52% monthly fall in global visits in October. Also, the website traffic has declined 0.07% year-to-date.
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