Poynt Acquisition: Key Details, Impact, and What Comes Next

GoDaddy's acquisition of Poynt for $320 million in cash marks a significant step in the commerce and payment services industry. This strategic move aims to enhance GoDaddy's offerings, enabling small businesses to seamlessly manage both online and offline sales. By integrating Poynt's advanced point-of-sale systems and payment solutions, GoDaddy positions itself as a comprehensive service provider for small businesses.

What Is Poynt?

Founded in 2014, Poynt offers an open commerce platform designed for merchants. Its core products include the GoDaddy Poynt Smart Terminals, various point-of-sale accessories, and custom solutions such as Ecommerce and Gift Cards. Poynt differentiates itself with its open platform, allowing optional apps and services, and "Mission Control" for remote device management. Additionally, it provides 24/7 technical support and dedicated account managers, ensuring seamless business operations for merchants.

Who Acquired Poynt?

GoDaddy is a prominent player in the domain registration and web services industry. It offers a wide range of products, including domain registration, website building, hosting, and online marketing tools. Key services encompass professional email, WordPress hosting, VPS hosting, and security solutions. Additionally, GoDaddy provides commerce tools like POS systems and payment processing. With over 20 million customers and 82 million domains under management, GoDaddy holds a significant market position and influence.

When Was Poynt Acquired?

GoDaddy announced its acquisition of Poynt on December 16, 2020, and completed the transaction on February 9, 2021. This acquisition occurred during a period when the industry was increasingly focusing on integrating comprehensive commerce and payment services to support small businesses. The move aligns with broader trends of providing seamless, multi-channel commerce solutions, enabling small businesses to manage both online and offline sales more effectively.

Why Was Poynt Acquired?

• Market Expansion: The acquisition of Poynt allows GoDaddy to expand its market by providing a complete suite of commerce and payment services. This move addresses a large addressable market opportunity by enabling small businesses to sell everywhere, both online and offline.
• Technology Integration: Integrating Poynt with GoDaddy's existing Websites + Marketing and WordPress commerce services will enable small businesses to offer connected commerce experiences across all channels. Poynt's advanced connected commerce platform, including its Android-based smart POS terminals and PoyntOS powered third-party terminals, will be integrated to enhance GoDaddy's offerings.
• Competitive Advantage: The acquisition provides GoDaddy with a competitive advantage by accelerating its strategy to offer a comprehensive suite of commerce and payment services. Poynt's technology and global distribution network, which includes over 100,000 merchants and $16 billion in annual Gross Merchandise Volume (GMV), will enhance GoDaddy's ability to support small businesses in selling and accepting payments anywhere.

Acquisition Terms

• Acquisition Price: $320 million in cash at closing and $45 million in deferred cash payments subject to certain performance and employment conditions over three years.
• Payment Method: Cash
• Key Conditions or Agreements:
  • The transaction is expected to close in the first quarter of 2021, subject to the satisfaction of regulatory approvals and other customary closing conditions.
  • Deferred cash payments are subject to certain performance and employment conditions over three years.
  • Post close, Poynt CEO Osama Bedier will join the GoDaddy leadership team, reporting to GoDaddy CEO Aman Bhutani, and will lead a new Commerce Division dedicated to creating seamless commerce experiences for small businesses.

Impact on Poynt

The acquisition of Poynt by GoDaddy has led to significant changes in operations and management. Poynt CEO Osama Bedier has joined the GoDaddy leadership team, heading a new Commerce Division focused on creating seamless commerce experiences for small businesses. This strategic move aims to integrate Poynt's advanced payment processing capabilities with GoDaddy's existing services, enhancing the overall operational efficiency and management structure of both companies.

In terms of product offerings, the acquisition has enabled GoDaddy to expand its suite of commerce and payment services. Small businesses now benefit from integrated payments, point-of-sale systems, invoicing, loyalty and rewards programs, and transaction management. This comprehensive approach aims to bridge online and offline shopping experiences, thereby improving sales and customer satisfaction. While specific employee and customer reactions are not detailed, the leadership's positive outlook suggests a favorable reception. For founders considering business transitions, tools like Sunset can assist in managing such processes compliantly and efficiently.