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CentralNic to buy domain reselling platform Hexonet for €10mln

Hexonet has operations in both Canada and Germany and sells domain name subscriptions both directly and through a network of over 1,000 resellers in 110 countries

Domain names
CentralNic said Hexonet’s Canadian operations would provide an enlarged base to cover the Americas

CentralNic Group PLC (LON:CNIC) has agreed to acquire international domain reseller Hexonet in a deal worth up to €10mln.

The AIM-listed firm, which provides registry services for top-level internet domains (TLDs), said the acquisition, its fourth in the last 12 months, would increase the number of domains under management by around 28% and was expected to be “immediately earnings accretive”.

READ: CentralNic raises €50mln through maiden bond issue and upgrades expectations for year

The group said the acquisition consideration will consist of €7mln paid at completion, expected in July, and a deferred payment of up to €3mln on the first anniversary of the purchase, which will be payable either in cash or in CentralNic shares.

Hexonet is a privately-owned group of companies with operations in both Canada and Germany which sells domain name subscriptions directly and through a network of over 1,000 resellers in 110 countries.

CentralNic said Hexonet’s Canadian operations would provide it with an enlarged base to cover the Americas and, in particular, the “important” Pacific time zone markets.

Ben Crawford, CentralNic’s chief executive, said the acquisition would boost not only the company’s recurring revenues and profits but also its market share and competitiveness.

He added that the purchase made the company “the clear global leader, combining two of the most technically advanced global reseller platforms in the domain industry".

In early trading on Monday, CentralNic shares were steady at 62.5p.

Quick facts: Centralnic Group PLC

Price: 62 GBX

LSE:CNIC
Market: LSE
Market Cap: £112.71 m
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