GoDaddy to acquire Locu to boost offerings to small businesses

GoDaddy has agreed to acquire Locu, a startup in San Francisco that helps local merchants get discovered online by their customers.

The financial terms of the transaction were not disclosed. The acquisition is in line with the strategy of GoDaddy, a Web hosting provider and domain name registrar, to broaden its offerings to small businesses.

The acquisition advances GoDaddy's strategy to deliver digital identities that help small businesses get more customers, the company said in a statement Monday.

Started in 2011, Locu is said to be used by more than 30,000 businesses, including restaurants, spas, salons, accountants, photographers and home-remodeling companies, to promote their services across Locu's partner network which includes ties with Yelp, YP.com, Foursquare, TripAdvisor and Facebook.

Locu will continue to operate out of its San Francisco and Cambridge, Massachusetts offices, and all its employees will join GoDaddy. The two companies have been working closely together since May when GoDaddy integrated Locu into its Website Builder service for small businesses.

Current Locu customers will not be impacted by the acquisition, Locu said in a post on its site.

GoDaddy in Scottsdale, Arizona, acquired M.dot, the developer of a mobile app for website creation and management by small businesses, in February. The company said in December it planned to take advantage of its scale, technology and brand to expand through partnerships and acquisitions aimed at helping small businesses succeed online.

John Ribeiro covers outsourcing and general technology breaking news from India for The IDG News Service. Follow John on Twitter at @Johnribeiro. John's e-mail address is john_ribeiro@idg.com

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