"Within two weeks eight or nine A&R men had landed in Ireland. It got to where there was a bidding war. We stopped that, because it wasn't about the money," she said.
"It was about support on the ground and how many albums they'd release."
Under the deal, Hozier will release two albums, with an option for another three.
Hozier's debut album was released just over a week ago and debuted at number two in the US.
"As a result of this young guy who released a video online is now number two in the USA. That would have taken forever. It has changed music forever, people will keep being discovered on the internet," Downey told the Sunday Independent.
The former Trinity College student's hit track has also recently been used in a new Beats headphones ad featuring LeBron James.
The ad has been viewed more than 10 million times online.
Take Me To Church has also been used on the soundtrack for Brad Pitt's new war film Fury.
Hozier will be back in the studio to start work on his second album at the start of 2016.