On Tuesday, GoDaddy announced the acquisition of Austin’s Main Street Hub for $125 million in cash and up to an additional $50 million in future earnouts.
The two companies support the small business sector by offering professional online services that business owners typically aren’t trained in or lack the time to do it well. While GoDaddy offers website building solutions to 17 million clients, Main Street Hub’s team and solutions support 10,000 small businesses by managing their online presence via social media.
“Main Street Hub complements GoDaddy’s existing business strategy and products/services portfolio,” said Dan Race, GoDaddy’s VP of corporate communications. “With the acquisition, GoDaddy will offer small businesses a complete ‘do-it-for-me’ service for building a professional online presence and extending online presence by managing all social media properties to ensure the online presence is engaging customers and delivering results.”
Race said details of how the two companies will work together will be disclosed when the acquisition is finalized, which is expected to happen in June.
“Main Street Hub and GoDaddy both share the same unrelenting passion for helping small businesses succeed.”
Main Street Hub said it will remain in Austin, and co-founders and co-CEOs Matt Stuart and Andrew Allison will join GoDaddy's commerce business unit in leadership roles.
Stewart and Allison launched Main Street Hub in 2010 from San Francisco, relocating the business to Austin a year later. Since then, the company has grown to over 500 employees locally and has raised more than $90 million in funding. This past September, the company announced that it had plans to relocate its New York City office to Austin and that it had signed a lease on a new office headquarters on the east side that would have room for up to 1,000 employees.
“Main Street Hub and GoDaddy both share the same unrelenting passion for helping small businesses succeed," said Stuart in a statement. “We complement each other strategically, culturally and across our products and services. We now have the scale and resources to help millions more business owners realize the value of having an optimized social media presence – our team can't wait to get started.”
