US-based private investment firm Kohlberg Kravis Roberts (KKR) that owns Godaddy website, is all set to buy Canada-based firm, Internet brands Inc. for $1.1 billion.
KKR, which owns the popular internet domain registration firm GoDaddy, is seeking to expand business into sectors which Internet Brands holds sway.
Internet Brand provides services to automobile majors such as Toyota, Ford and Chrysler Group. The company's website receives more than 100 million visits per month as majority of its revenue is from online advertising, reports Reuters.
KKR, originally launched as Carsdirect.com in 1998 was incorporated in 2007 in NASDAQ exchange with a ticker symbol INET. It has now become an online media and client service firm with focus on automobile, health, legal and travelling.
The brand was acquired by private equity firm Hellman & Friedman in 2010 for $640 million in cash and now the company also operates websites such as Lawyers.com and ApartmentRatings.com.
Members of the brand including Bob Brisco, the chief executive will be investing in the deal alongside KKR, according to the New York Times. Brisco will hold a minority stake and will continue to run the company.
"Internet Brands is at an exciting inflection point of growth as the company transitions from a portfolio of web assets to a vertically integrated provider of media and client software solutions," co-head of KKR's technology investing team, Herald Chen told NYT.
KKR has also teamed up with another company that manages portfolio assets. In 2010, it acquired Visma; a company based in Oslo that provides businesses with accounting and payroll tasks.
''Its growth has been driven by its powerful, proprietary operating platform and management team with a focused vision,'' Chen added.
Kohlberg Kravis Roberts (KKR) has market cap of $9.34 billion. Shares of KKR closed on Tuesday at $23.35 at the New York Stock Exchange.
