FRANKFURT, July 18 (Reuters) - Private equity group BC Partners agreed to buy German managed hosting provider PlusServer from GoDaddy Inc for an enterprise value of 397 million euros ($459 million) and said it was eyeing further acquisitions in the sector.

"The market for managed hosting in Germany is highly fragmented, and PlusServer is an ideal platform for consolidating this market," BC Partners managing partner Stefan Zuschke said in a statement on Tuesday.

According to GoDaddy, PlusServer will assume liabilities of 23 million euros as part of the deal and retain existing cash on the balance sheet of 12 million euros.

GoDaddy, a U.S.-based website domain name provider, said it planned to use the proceeds of the sale as well as some cash on hand to repay its 500 million euro bridge loan.

It had acquired PlusServer as part of its recent purchase of Host Europe Group for 1.69 billion euros. It said at the time it would explore further options for PlusServer, including a possible sale.

PlusServer, based in Cologne, had over 300 employees and generated around 100 million euros of revenues last year.

Oakley Advisory acted as financial advisor to GoDaddy on the deal, while Heuking Kuehn Lueer Wojtek were legal advisors.

BC Partners was advised by Raymond James and Arma Partners on the M&A aspects of the deal, while Ernst & Young provided due diligence and structuring advice and Latham & Watkins were legal advisors.

($1 = 0.8656 euros) (Reporting by Maria Sheahan; Editing by Victoria Bryan)