logo-loader
RNS
viewCentralnic Group PLC

CentralNic acquires Ideegeo Group Ltd

/**/ sup{font-size:80%} .l{size:612.0pt 792.0pt;margin:72.0pt 90.0pt 72.0pt 90.0pt;}div.l{}p.al{margin:0cm;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Cambria","serif";font-div: italic; text-align: center; text-autospace: none}span.aj{font-size:11.0pt;font-family:"Times New Roman","serif"}p.am{margin:0cm;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Cambria","serif";text-autospace:none}span.ah{font-size:11.0pt;font-family:"Times New Roman","serif";color:#00000A}p.an{margin:0cm;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Cambria","serif";font-weight: bold; text-align: center; text-autospace: none}span.af{font-size:11.0pt;font-family:"Times New Roman","serif"; color:black}p.ao{margin:0cm;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Cambria","serif";text-align: center; text-autospace: none}p.ap{margin:0cm;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Cambria","serif";font-weight: bold; text-align: justify; text-autospace: none} p.aq{margin:0cm;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Cambria","serif";text-align:justify;text-autospace:none}span.aa{font-family:"Times New Roman","serif"}span.z{font-size: 11.0pt;font-family:"Times New Roman","serif"}p.ar{margin:0cm;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Cambria","serif";font-div: italic; text-align: justify; text-autospace: none}span.y{font-size:9.0pt;font-family:"Times New Roman","serif"}p.as{margin:0cm;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Cambria","serif";margin-bottom:8.0pt;text-autospace:none}span.v{font-size:11.0pt; font-family:"Times New Roman","serif"}table.at{margin-left:-5.4pt;border-collapse:collapse;border:none}td.t{width:211.0pt;border:solid #BFBFBF 1.0pt;padding:0cm 5.4pt 0cm 5.4pt}p.au{margin:0cm;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Cambria","serif";font-weight: bold; text-autospace: none} td.s{width:205.6pt;border:solid #BFBFBF 1.0pt;border-left: none;padding:0cm 5.4pt 0cm 5.4pt}td.r{width:211.0pt;border:solid #BFBFBF 1.0pt;border-top: none;padding:0cm 5.4pt 0cm 5.4pt}td.q{width:205.6pt;border-top:none;border-left:none; border-bottom:solid #BFBFBF 1.0pt;border-right:solid #BFBFBF 1.0pt; padding:0cm 5.4pt 0cm 5.4pt}span.p{font-size:11.0pt;font-family:"Times New Roman","serif";letter-spacing: -.35pt}p.av{margin:0cm;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Cambria","serif";text-align: right; text-autospace: none}span.m{text-decoration: underline}p.a,li.a,div.a{margin:0cm;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Cambria","serif";} /**/
RNS Number : 2089I
CentralNic Group PLC
07 August 2019
 

 

7 August 2019

 

CentralNic Group plc

("CentralNic" or the "Company" or the "Group")

 

CentralNic Group plc acquires the international domain name retailer  

Ideegeo Group Ltd ("Ideegeo") for up to NZD$5.2 million (c.$3.4m USD)

 

CentralNic Group PLC (AIM: CNIC), the global internet platform that derives revenue from the subscription sales of domain names and other ancillary services, announces it has completed the acquisition of the entire share capital of  Ideegeo Group Limited (the "Acquisition"), a privately owned domain name retailer serving an international customer base from New Zealand ("Ideegeo"). The purchase price  is $5.2 million NZD (c.$3.4m USD), of which $520,000 NZD (c.$0.3m USD) constitutes a deferred payment, held in escrow until May 2021.

 

The acquisition is both strategic and earnings accretive to CentralNic. Ideegeo is operator of the retail website iwantmyname.com - a leading innovator in the application of User Centered Design to the retailing of domain names with 180,000 domains under management.  The Company intends to deploy the design solutions developed by Ideegeo across its retail websites, noting that high usability is particularly ideal for customers in emerging economies, which is a key target market for CentralNic. The Company is retaining the staff of Ideegeo and appointing one of Ideegeo's founders as Customer Engagement Product Planner and Manager across its retail brands.

 

Ideegeo is one of the largest customers of Hexonet, recently acquired by CentralNic as announced on 1 July 2019. The Acquisition is therefore expected to deliver operational cost savings through vertical integration as well as permanently locking in an important revenue stream for CentralNic. Finally, as Ideegeo currently only sells domain names, CentralNic believes that there are cross selling opportunities to provide Ideegeo's 80,000 customers with CentralNic's extended product offering, including hosting, SSL certificates and other additional subscription products and services.

 

Ideegeo sells domain name subscriptions directly to small business customers, with a high level of recurring revenues and excellent customer retention. For the financial year ended 31 March 2019, Ideegeo's revenues were c.$6.2 million NZD (c.$4.2m USD), with an EBITDA (adjusted for the costs of the shareholders leaving the business) of $0.9m NZD (c.$0.6m USD) 1. The consideration represents a multiple of 5.8 times trailing adjusted EBITDA and is paid in cash. The consideration has been funded by proceeds of the recently closed senior secured bond issue of EUR 50m. The Acquisition, CentralNic's fifth in twelve months, is expected to be immediately earnings accretive.

 

Ben Crawford, CEO of CentralNic, said: "The acquisition of Ideegeo adds more to CentralNic's retail group than additional earnings, customers and synergies. Its leading User Interface and Customer Engagement solutions, and the team that created them, represent a further differentiator for CentralNic's global retail business from the competition to support our organic growth."

 

1: Ideegeo's revenues and EBITDA for financial year ended 31 March 2019 are unaudited.

 

For further information:  

CentralNic Group Plc

Ben Crawford, Chief Executive Officer

Don Baladasan, Group Managing Director

Michael Riedl, Chief Financial Officer

 

 +44 (0) 203 388 0600



Zeus Capital Limited (NOMAD and Joint Broker)

Nick Cowles / Jamie Peel (Corporate Finance)

John Goold / Rupert Woolfenden 

(Institutional Sales)

 

+44 (0) 161 831 1512

+44 (0) 203 829 5000

Stifel (Joint Broker)

Fred Walsh / Neil Shah / Alex Price

 

+44 (0)20 7710 7600

 

 

Newgate Communications (for Media)

Bob Huxford

Tom Carnegie

Robin Tozer

+44 (0) 203 757 6880

[email protected]

 

 

About CentralNic Group plc 

CentralNic (AIM: CNIC) is a London-based AIM-listed company which drives the growth of the global digital economy by developing and managing software platforms allowing businesses globally to buy subscriptions to domain names, used for their own websites and email, as well as for protecting their brands online.  Its core growth strategy is identifying and acquiring cash-generative businesses in its industry with annuity revenue streams and exposure to growth markets and migrating them onto the CentralNic software and operating platforms. 

 

CentralNic operates globally with customers in almost every country in the world.  It earns recurring revenues from the worldwide sales of internet domain names and other services on an annual subscription basis. 

 

For more information please visit: www.centralnicgroup.com 

 

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
END
 
 
ACQKMGGRKNNGLZG

Quick facts: Centralnic Group PLC

Price: 47.5

Market: LSE
Market Cap: £86.35 m
Follow

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

CentralNic CEO eyeing emerging markets

Ben Crawford, chief executive of CentralNic (LON:CNIC), says the fast-growing emerging markets are where the growth is going to come from for the top-level domain group. ‘China is the biggest market for domain names in the world now in terms of growth,’ he explains. ‘But there’s a billion...

on 04/28/2015