GoDaddy said Tuesday that it's buying Poynt, providers of point of sale (POS) and other software for small businesses, for $365 million. Under the terms of the deal, GoDaddy will pay $320 million in cash at closing and $45 million in deferred cash payments over three years.
GoDaddy, which provides web hosting and domain registrar services, is aiming to use Poynt to expand its e-commerce and payments capabilities.
Similar to Square, Poynt offers a suite of products tailored to small businesses, including POS, payments processing, and invoicing. Poynt's products are used by more than 100,000 merchants with over $16 billion in annual Gross Merchandise Volume (GMV), according to the company.
GoDaddy said that by combining Poynt with its existing websites, marketing and WordPress commerce services, the company will be able to offer its customers a unified commerce platform bridging both online and offline shopping.
"Commerce is critical to our customers and we continue to invest in building seamlessly intuitive experiences that enable small businesses to sell everywhere," said GoDaddy CEO Aman Bhutani. "Poynt accelerates our strategy to provide a complete suite of commerce and payment services to address this critical customer need and focus on a large addressable market opportunity. We've built leading e-commerce capabilities that today allow small businesses to easily sell on their sites, across major marketplaces and the most popular social networks, and now we will help make them successful everywhere."
The acquisition comes as GoDaddy is seeing record net new customers and acceleration across its three core product categories -- domains, hosting and presence, and business applications. GoDaddy said in its Q3 financial report last month that it added over a million customers this year, net of churn, which is its highest nine-month rate of additions in its history.
Upon closing, Poynt CEO Osama Bedier will join the GoDaddy leadership team and lead a newly formed commerce division.