CSPs, Mergers and Acquisitions, MSP, Small business

GoDaddy Acquires FreedomVoice: Cloud PBX for SMBs

Phone on the cloud. Cloud computing concept and business
Chris Sterbenc
Chris Sterbenc

GoDaddy has acquired FreedomVoice, a key provider of cloud-based VoIP phone systems that serves nearly 40,000 customers across the United States. GoDaddy is paying $42 million in cash plus up to $5 million in potential future milestone payments.

ChannelE2E is trying to hunt down the deal's valuation (i.e., sale price multiple relative to revenue). Take a closer look, and you'll notice FreedomVoice delivers its service through more than 1,000 resellers and Managed Service Providers (MSPs). ChannelE2E is checking to see if FreedomVoice VP of Sales/Channel Chief Chris Sterbenc is transitioning to GoDaddy.

> Related: Why GoDaddy Must Embrace FreedomVoice MSPs

The FreedomVoice acquisition comes as GoDaddy seeks to ramp up its cloud services for SMBs -- while differentiating from giants like Amazon Web Services and Microsoft Azure. Still, GoDaddy and FreedomVoice together may wind up competing head-on against Microsoft's emerging Cloud PBX capabilities for Office 365.

FreedomVoice is part of a larger telephony push at GoDaddy. According to the company, GoDaddy recently created a telephony business unit to oversee the company's communication products strategy and execution, including products related to FreedomVoice, the company said. The business unit will be led by Intuit and small business veteran Barry Saik, who recently joined GoDaddy as General Manager and Senior Vice President, Telephony.

FreedomVoice products will continue to be available online and through partners, the companies added.

Joe Panettieri

Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.