GoDaddy.com is pushing ahead with an initial public offering early next year that would value the world’s biggest domain registration service at roughly $4.5 billion, The Post has learned.
CFO Scott Wagner met last week with analysts to give an update on GoDaddy since it first filed paperwork to go public in June, a source said.
The company, backed by buyout giants KKR and Silver Lake, is trying to woo investors even as the 800-pound gorilla moves into its territory. Just a few weeks after GoDaddy filed for an IPO, Google began testing a domain registration service.
In its meeting with the Street, GoDaddy stressed its desire to diversify — building Web sites for customers and helping them to process transactions on their sites, for example — before Google or another rival makes a more serious push.
“Some of our current and potential competitors have greater resources, more brand recognition and consumer awareness, more diversified product offerings, greater international scope and larger customer bases than we do,” GoDaddy said in its latest IPO document.
Google’s threat has taken a toll on rivals. Web.com hit a one-year low this month after it missed revenue expectations. Shares closed at $16.39, down 2.3 percent, on Wednesday.
GoDaddy — the leader with 14 million customers — has fared better. Average revenue per user rose in the first nine months, from $102 to $112. Adjusted earnings before interest, taxes, depreciation and amortization rose to $215 million, from $156 million.
GoDaddy’s backers, who paid $2.25 billion for the company in 2011, have incentive to proceed with an IPO. GoDaddy borrowed $1.1 billion so it could pay KKR and Silver Lake a $350 million dividend. The 4.75 percent interest loan falls by half a percent if GoDaddy goes public, said Bloomberg. KKR and Silver Lake declined comment.