News Byte: GoDaddy Acquires Locu

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News Byte: GoDaddy Acquires Locu
News Byte: GoDaddy Acquires Locu

The domain-name provider GoDaddy announced today it has entered into a definitive agreement to acquire the San Francisco-based company Locu, whose technology currently is used by 30,000 small businesses that promote themselves online. Here's how it works: businesses that add their information (i.e., street address, phone number, hours of operation, and various menus or services lists) to Locu will show up on a number of different services with mapping components like Facebook, FourSquare, TripAdvisor, and Yelp.

Terms of the deal were not publicly disclosed, though the website All Things D reported the figure at $70 million in cash and stock. The entirety of Locu's staff is expected to join the GoDaddy team and both Locu offices in San Francisco and in Cambridge, MA, will continue to operate in their respective locations.

“The Locu team will play a much bigger role in helping GoDaddy's small businesses reach their customers more effectively and at lower cost,” said Raj Mukherjee, general manager of presence and commerce at GoDaddy, in a press statement.

The purchase of Locu, which began in 2011 at the Massachusetts Institute of Technology, gives GoDaddy another tool to offer small businesses looking for a place to host their websites—one that could be enticing, especially as location plays an increasing role in the way consumers search for and interact with businesses. GoDaddy and Locu maintain an existing business relationship; last May, the former integrated Locu's technology into its Website Builder, a solution stack designed to help businesses quickly build and market their websites.

“Locu epitomizes what GoDaddy is all about–both companies are hell-bent on helping the ‘little guy' thrive on the Internet,” said GoDaddy CEO Blake Irving in a statement.

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