The Wall Street Journal reported a few days ago that GoDaddy is close to a $2.5 Billion sale of the company to a group of investors that includes KK&R, Silver Lake Partners and Technology Crossover Partners.
This is the largest software success story in Arizona's history and could be the start of a boom for Arizona's software sector. Specifically, here is how this deal could benefit the ecosystem:
- Since the deal appears to be a cash deal, the sale of GoDaddy could bring $2.5 Billion into Arizona's economy.
- Depending on how many people own shares of GoDaddy, besides Bob Parson becoming a billionaire, this deal has the potential of making a dozen or more people 10+ millionaires.
- Usually, with such exits, there are numerous people who use their newly found cash to bankroll a new startup. In fact, this was exactly the type of event that lead to Bob Parson to create GoDaddy after the sale of his accounting software company.
- Since its safe to assume the beneficiaries of this deal will be partial to software companies, chances are any new venture they start will also be in the software sector.
- With some luck, some of the beneficiaries might start investing in local software startups.
All of this is great news for Arizona's software sector. With a $2.5 Billion software win in Arizona, it should also get the attention of silicon valley VCs.
A big congratulations to all of the people who made GoDaddy the huge success story that it has become.