AIM-listed CentralNic closes deal to build domain offering

Technology company CentralNic has purchased Internet.BS for an amount which could climb to $7.5 million.

Having outlined its key objectives when listing in September 2013, CentralNic has made an acquisition so that it can offer domain names at retail as well as wholesale.

Internet registry provider CentralNic joined London’s Alternative Investment Market (AIM) in the third quarter of last year as a way of growing its number of contracts.

The business has now snapped up the business and certain assets of Internet.BS, a retailer of domain names registered in the Bahamas.

According to a statement, Internet.BS is one of the world’s top thirty domain name retailers and has a customer base drawn from 199 countries.

A consideration of $5.2 million, $2.7 million in cash and $2.5 million through the issuing of new ordinary shares, is due on completion. The shares will then be held in escrow for 12 months.

A deferred amount of $1.8 million, due 12 months after closing, will be based on future business performance.

Ben Crawford, CEO of CentralNic, comments, ‘As well as being a cash generative business with a large international client base, this acquisition provides us with the multilingual technical platform we need to offer domains for sale to the public in developing markets worldwide, where we have identified several opportunities in domain name retail.

‘This deal allows us to accelerate the strategy we announced to the market when we listed, and which we have since progressed with the launch of other TRS retail websites such as buydomains.london, domain.luxury, domain.build and buy.menu.’

Back in September CentralNic raised £7 million upon its admission to AIM, with shares priced at 55p each. It was one of a number of other technology listings, such as blur Group and Outsourcery, which occurred during 2013.

Hunter Ruthven

Bernard Williamson

Hunter was the Editor for GrowthBusiness.co.uk from 2012 to 2014, before moving on to Caspian Media Ltd to be Editor of Real Business.

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