GoDaddy to buy Poynt in $320 million-plus payments deal
In a move designed to help small businesses to establish online and offline sales, web platform provider GoDaddy has agreed to acquire Poynt payments services.
The $320 million cash deal, with an extra $45 million in deferred cash payments subject to performance and employment conditions over the next three years, is expected to close in the first quarter of 2021.
GoDaddy is estimating the acquisition could deliver more than $150 million in bookings by 2023.
"Commerce is critical to our customers and we continue to invest in building seamlessly intuitive experiences that enable small businesses to sell everywhere," GoDaddy CEO Aman Bhutani said in a Tuesday press release. "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."
Because GoDaddy has built up its e-commerce and social media capabilities, the company views the acquisition as a chance to expand services and provide businesses the opportunity to be "successful everywhere," Bhutani added.
With global distribution through reseller partnerships, Poynt is used by more than 100,000 merchants with more than $16 billion in annual gross merchandise volume, GoDaddy says.
Poynt, long considered a rival to Square and other payments hardware and software providers targeting smaller businesses, offers products needed to sell and accept payments anywhere — spanning point-of-sale systems, payments apps, invoicing, loyalty and rewards programs, and transaction management.
"Poynt has spent the past seven years building the most advanced connected commerce platform on the market," Poynt CEO Osama Bedier said in the release. "Our team is super excited to join forces and help millions of GoDaddy entrepreneurs sell everywhere, in the most seamless experience possible, at a time they couldn't need it more."
Poynt's range of Android-based smart POS terminals, and PoyntOS powered third-party terminals, target in-person merchant and consumer interaction. Poynt also provides mobile app and web/desktop software for the POS, invoicing and virtual terminals.
Additionally, Poynt offers a range of payment processing models for small businesses, including integration with 16 different payment processors, and offers Poynt Payments in the U.S. built in partnership with Elavon/U.S. Bank.
After the acquisition deal closes, Bedier will join the GoDaddy leadership team and report to Bhutani to oversee a new division targeting commerce experiences for small businesses.