While the financial terms of the transaction have not been disclosed, AllThingsD says that sources close to the deal said GoDaddy paid $70 million in cash and stock for the company.
Founded in 2011 at Massachusetts Institute of Technology, Locu is used by 30,000 small businesses, including restaurants, spas and accountants, as a central place to manage and publish business listings via its partners including Yelp, YP.com, Foursquare, TripAdvisor and Facebook.
The whole concept of helping small businesses get online and be discovered online is something that has been central to every acquisition GoDaddy has made in the past couple of years. In February, GoDaddy acquired M.dot, a mobile app for small business website creation and website. Last year, GoDaddy acquired Outright to help small businesses manage their finances through an accounting software and app.
“Locu epitomizes what GoDaddy is all about – both companies are hell-bent on helping the ‘little guy’ thrive on the Internet,” GoDaddy CEO Blake Irving said in a statement. “Locu is comprised of amazing technologists who have taken the very complex problem of helping small businesses ‘get found’ wherever consumers are looking and are solving it through elegant, technology-based services. We are welcoming some of the brightest technology minds on the planet to our GoDaddy family.”
GoDaddy integrated Locu into its website builder in May for businesses to be able to create, manage and update their menu and service lists.
“We couldn’t think of a more powerful platform to accelerate Locu’s growth,” Rene Reinsberg, CEO and co-founder at Locu said in a statement. “We each have a core mission to help local businesses succeed. Our team developed deep respect for GoDaddy during our initial partnership and was impressed by the execution speed and quality, its industry-leading customer support and the passionate, experienced new management team who puts ‘product first.’ All of this further positions GoDaddy as the ‘go-to’ provider in the small business space.”
Locu will operate out of its San Francisco and Cambridge, Massachusetts offices. GoDaddy is current hiring for both locations.
GoDaddy has been hiring continually this year, adding a new engineering office in the Seattle region, and breaking ground on a new data center in Tempe, Arizona.