GoDaddy is acquiring Main Street Hub, an Austin-based online marketing firm, in a $125 million cash deal.
As part of the deal, Main Street Hub could also earn up to $50 million in potential future earnouts.
Founded in 2010, Main Street Hub manages social, web and email marketing for small businesses.
GoDaddy is the largest internet domain registrar in the world, and hosts and builds websites for businesses. The Scottsdale, Ariz.,-based company has 17 million customers and over 6,000 employees worldwide.
Matt Stuart and Andrew Allison launched Main Street Hub when they were attending the Stanford University Graduate School of Business. The company had 11 employees when the founders moved it to Austin from San Francisco in 2011, and it has since grown to about 600 employees.
Today, Main Street Hub has more than 10,000 small business customers, including restaurants, hair salons and auto repair shops, who typically pay $300 a month for its services.
“Our customers don’t have the time or resources to be able to focus on this,” Stuart said in a Statesman interview in 2017. “It’s so critical to their businesses to communicate with customers and reach potential customers. We take this off their hands so they can focus on the things they love doing.”
Main Street Hub’s marketing platform integrates social media, customer reviews, mobile services and email marketing. The company also sets up branded pages on sites such as Facebook, Instagram and Yelp, and monitors the sites.
Main Street Hub said last year that the company was planning to construct a new corporate headquarters on the city’s east side capable of accommodating more than 1,000 employees.
The building, which is set to open in mid-2019, will consolidate about 600 product, engineering, sales and operations workers currently based in three offices: two in downtown Austin – at 111 Congress Ave. and 600 Congress Ave. – and one in New York.
Allison said having everyone in one place will make operations more efficient for Main Street Hub.
“We’re doubling down on Austin and building for the long term,” he said at the time. “The idea of being all together with room to grow is the biggest treat.”
Company officials said they do expect to reach 1,000 employees eventually, but they don't currently have a time frame for reaching that staffing level.
The four-story, 114,000-square-foot new headquarters building will go up at 2010 E. Sixth Street, between Chicon and Robert Martinez Jr. streets.
Main Street Hub has raised more than $70 million in debt and equity from investors including Silicon Valley Bank and Vista Equity Partners.
GoDaddy said that acquiring Main Street Hub furthers its professional services strategy for small business owners who prefer to have dedicated experts build their online presence and manage it for them.
“Joining forces with Main Street Hub better enables us to help our customers reach their goals, while saving them time and offering peace of mind,” said Lauren Antonoff, GoDaddy senior vice president.
Stuart, who is co-CEO of Main Street Hub, said GoDaddy will allow the company to grow much faster than it could on its own.
“We complement each other strategically, culturally and across our products and services,” he said. “We now have the scale and resources to help millions more business owners realize the value of having an optimized social media presence.”
The transaction is expected to close late in the second quarter of 2018, officials said.
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