GoDaddy to acquire FreedomVoice for $42 mn in cash

GoDaddy today announced its deal to acquire FreedomVoice for $42 million in cash plus up to $5 million in milestones payments.

The acquisition of FreedomVoice, which will maintain offices in Encinitas, California, is part of the strategy of GoDaddy to expand its communication business for SMBs.

Web hosting vendor GoDaddy, which is head-quartered in the U.S., aims to target 210 million small businesses globally who rely on mobile or desktop phones to communicate with their customers. At present, GoDaddy has 14 million customers across the world.

FreedomVoice offers communications specifically for small businesses. Products include a custom cloud number (local, toll-free, vanity) that automatically routes business-related calls to a user’s mobile phone, and a cloud-based phone system that delivers enterprise-quality voice over IP for small offices.

Steven Aldrich, chief product officer at GoDaddy, said: “FreedomVoice is a natural fit with GoDaddy as we both share a common goal: to harness the power of the cloud to deliver products that fit the specific needs of small businesses, coupled with customized customer care.”

GoDaddy’s newly floated Telephony business unit will be managed by Intuit veteran Barry Saik, who recently joined GoDaddy as general manager and senior vice president, Telephony. Eric Thomas, CEO of FreedomVoice, will become Telephony Revenue and Integration Officer at GoDaddy.

FreedomVoice products will be available online and through partners. GoDaddy and FreedomVoice plan to deliver new cloud-based voice products in the near future.