Small business domain host GoDaddy announced plans to acquire Encinitas, California-based FreedomVoice for $42 million in cash, plus up to $5 million in potential future milestones payments.
GoDaddy will use the deal to offer cloud-based telephony services to SMBs. FreedomVoice's products include a custom cloud number that automatically routes business-related calls to a user's mobile phone, and a cloud-based phone system that delivers voice over IP for small offices.
"GoDaddy has 14 million customers and many of them have struggled to find affordable and simple telephony solutions," said Steven Aldrich, GoDaddy's chief product officer.
GoDaddy has been working to expand its communications services for small businesses and recently created a designated telephony business unit to oversee its communications strategy. The new unit will be managed by Intuit veteran Barry Saik. FreedomVoice CEO Eric Thomas is slated for the role of Telephony Revenue and Integration Officer at GoDaddy.
For now, FreedomVoice will continue to sell its products online and through partners. GoDaddy said it plans to integrate cloud-based voice products from FreedomVoice into GoDaddy "in the near future."