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GoDaddy to Bloster Website Security with Sucuri Acquisition

Zacks Equity Research

GoDaddy Inc. GDDY recently agreed to acquire website security firm, Sucuri. The term of the deal were kept under the wraps.

California-based Sucuri is a leading provider of security products and services to website owners from emerging online threats. It provides website owners the tools needed to respond to hacks when they occur, while also virtually patching existing vulnerabilities.

In addition, Sucuri provides security plug-in for the WordPress platform. It provides solutions to advance the security awareness and management of WordPress websites.

Sucuri Deal to Add to GoDaddy’s Security Offerings

The deal will complement GoDaddy's security business as Sucuri offerings will further advance and expand digital security for its customers. GoDaddy helps its customers to get the sites live while Sucuri will protect them from any online threat. It will help the domain registration and web hosting provider to broaden its efforts and meet the security needs of customers.

Also, like GoDaddy, Sucuri provides its customers with 24 hours a day service and seven days a week. This will give help GoDaddy to serve its customers in the best possible way.

Coming to the price performance, over the past one year, shares of GoDaddy have been steadily treading higher. The stock generated a return of 16.16% compared with the Zacks Internet Services- Delivery industry’s gain of 14.81%.

Our Take

The deal makes sense as cybercrime is increasingly become a concern. With more and more systems getting automated, both big and small businesses are increasingly becoming vulnerable to cyber-attacks.

Therefore, GoDaddy has been continuously investing in security and compliance technology. In Dec 2016, GoDaddy expanded its security product portfolio by adding two new offerings, developed in partnership with SiteLock. The new security features were TrueShield Web Application Firewall and TrueSpeed Content Delivery Network that GoDaddy claims to provide impressive results when it comes to website protection and performance.

We believe that these product launches and the acquisition will position GoDaddy well to gain from the increasing adoption of simple and cost efficient solutions of safeguarding online assets.

About GoDaddy

GoDaddy is engaged in the designing and development of cloud-based technology products for small businesses, web design professionals and individuals. The company’s industry peers include big names such as MakeMyTrip, CafePress and GrubHub.

GoDaddy Inc. Price and Consensus

 

GoDaddy Inc. Price and Consensus | GoDaddy Inc. Quote

Zacks Rank &Stocks to Consider

Currently, GoDaddy carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader technology sector are ON Semiconductor Corporation ON, Alibaba Group Holding Limited BABA and Advanced Energy Industries, Inc. AEIS, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

For the current year, estimates for ON Semiconductor went up 7.8% in the last 60 days. Estimates for Alibaba and Advanced Energy increased 23.3% and 18.2%, respectively.

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