GoDaddy has entered into a definitive agreement to acquire Host Europe Group (HEG) for €1.69 billion ($1.79 billion), including €605 million ($648 million) paid to the selling shareholders and €1.08 billion ($116 billion) in assumed net debt.

Financing for the transaction has been committed by existing lenders at interest rates similar to GoDaddy’s existing term loan. Barclays is leading a leveraged loan financing to back the deal alongside a number of other banks, expected to include Citigroup, Deutsche Bank and RBC. The loan is due to launch for syndication to investors in January, according to Reuters.

The transaction has been approved by the GoDaddy board of directors and HEG’s shareholders and is expected to close in Q2/17, subject to customary regulatory and other closing requirements.

HEG is currently owned by international private equity firm Cinven, which acquired the business in August 2013. GoDaddy intends to integrate the majority of HEG’s business while exploring strategic alternatives for HEG’s PlusServer managed hosting business, including a possible sale.

As the largest privately-owned web services provider in Europe, HEG serves small businesses and web experts and has more than 1.7 million customers. With strong positions in the UK and Germany, including brands such as 123Reg, Domain Factory, Heart Internet and Host Europe, HEG complements GoDaddy’s position in the U.S. and fast-growing international footprint.

“GoDaddy has successfully expanded its international business to 56 global markets over the past four years,” said GoDaddy CEO Blake Irving. “HEG has built an impressive business that generates strong top-line growth, high margins and industry-leading customer satisfaction. By joining forces with HEG, we accelerate our expansion into Europe with the delivery of a broader range of cloud-based products, built on a single global technology platform, and supported by unparalleled customer care to help small businesses and web designers succeed online.”

Patrick Pulvermüller will lead the combined company’s European operations. He will report to Andrew Low Ah Kee, GoDaddy’s executive vice president of International. GoDaddy’s European team will report to Pulvermüller.