Social media management startup Main Street Hub has agreed to be acquired by GoDaddy Inc. for $125 million cash, the companies announced Tuesday afternoon.
The deal, already approved by GoDaddy's board of directors, is slated to close in the second quarter this year. Main Street Hub could get up to $50 million in future earnings as part of the deal.
Main Street Hub will stay in Austin. Its co-CEOs and co-founders, Matt Stuart and Andrew Allison, will join GoDaddy in leadership positions.
"Main Street Hub and GoDaddy both share the same unrelenting passion for helping small businesses succeed," Matt Stuart, co-CEO and co-founder of Main Street Hub, said in a news release. "We complement each other strategically, culturally and across our products and services. We now have the scale and resources to help millions more business owners realize the value of having an optimized social media presence – our team can't wait to get started."
Small- and mid-sized businesses contract with Main Street Hub to manage marketing efforts that involve a variety of content and social media channels to reach new and existing customers. It was founded in 2010 in San Francisco. It moved to Austin in 2011.
The acquisition comes a few months after Main Street Hub announced it would move to a new headquarters on the east side at 2010 E. Sixth St. in mid-2019. It has about 600 employees and the new space will have room for 1,000-plus.
Main Street Hub has raised about $93 million in funding, including a $27 million debt refinancing deal with Silicon Valley Bank. Other investors have included Vista Equity Partners, Bessemer Venture Partners and Harrison Metal Capital.
