GoDaddy Announces $250 Million Accelerated Share Repurchase Plan

Rhea-AI Summary

GoDaddy has initiated a $250 million accelerated share repurchase agreement with Goldman Sachs as part of its broader $750 million repurchase program. This buyback underscores GoDaddy's commitment to shareholder value, with approximately 6.9 million shares repurchased in 2021, representing 4% of total shares outstanding. Since January 2020, the total buyback will stand at about 16.9 million shares, or over 9% of total shares. The final settlement of this agreement is anticipated in Q3 2021.

Positive

• Initiation of a $250 million accelerated share repurchase plan.
• Total repurchase with the ASR will reach approximately 16.9 million shares, enhancing shareholder value.
• Repurchase represents over 9% of total shares outstanding since January 2020.

Negative

• None.

TEMPE, Ariz., Aug. 12, 2021 /PRNewswire/ -- GoDaddy Inc. (NYSE: GDDY), the company that empowers everyday entrepreneurs, today announced it has entered into an accelerated share repurchase agreement (ASR) with Goldman Sachs & Co. LLC to repurchase $250 million of GoDaddy's common stock. The ASR was entered into pursuant to GoDaddy's share repurchase program, under which approximately $750 million share repurchase authorization will remain available upon completion of the ASR.

"The accelerated repurchase reinforces our confidence in the long-term opportunity for GoDaddy and our commitment to creating shareholder value," said GoDaddy CFO Mark McCaffrey.

Following completion of the program, GoDaddy will have repurchased a total of approximately 6.9 million shares year-to-date, representing 4% of total shares outstanding. Since January 2020, GoDaddy will have repurchased approximately 16.9 million shares, representing more than 9% of total shares outstanding. The final settlement of the ASR is expected to be completed in Q3 of 2021.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Information set forth in this communication contains forward-looking statements that involve a number of risks and uncertainties. GoDaddy cautions readers that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information. These statements include, but are not limited to, statements about GoDaddy's long-term opportunity and the expected completion date of the ASR. Forward-looking statements involve a number of risks, uncertainties or other factors beyond our control. These factors include, but are not limited to, our ability to implement our strategic initiatives, economic, political and market conditions and fluctuations, government and industry regulation, interest rate risk, U.S. and global competition, and other factors detailed in our filings with the U.S. Securities and Exchange Commission, including our annual reports on Form 10-K and quarterly reports on Form 10-Q, which are available on the SEC's website at www.sec.gov. GoDaddy undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.

About GoDaddy

GoDaddy is empowering everyday entrepreneurs around the world by providing all of the help and tools to succeed online. GoDaddy is the place people come to name their idea, build a professional website, attract customers, sell their products and services and manage their work. Our mission is to give our customers the tools, insights and the people to transform their ideas and personal initiative into success. To learn more about the company visit www.GoDaddy.com.

Source: GoDaddy Inc.

© 2021 GoDaddy Inc. All Rights Reserved.

 

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SOURCE GoDaddy Inc.

FAQ

What is the purpose of GoDaddy's $250 million share repurchase agreement?

The $250 million share repurchase agreement aims to reinforce shareholder value and highlights GoDaddy's confidence in its long-term growth potentials.

What impact will GoDaddy's share buyback have on its stock price?

The share buyback is expected to reduce the number of shares outstanding, which could lead to an increase in earnings per share and potentially enhance the stock price.

How many shares has GoDaddy repurchased in total since January 2020?

GoDaddy has repurchased approximately 16.9 million shares since January 2020, accounting for over 9% of total shares outstanding.