Internet domain seller CentralNic Group PLC (LON:CNIC) has acquired Ideegeo Group, a privately owned domain name retailer based in New Zealand.
CentralNic will pay 5.2mln New Zealand dollars – about US$3.4mln – in cash, of which 520,000 New Zealand dollars will be held in escrow until May 2021.
In the year to the end of March 2019, Ideego had revenue of around NZ$6.2mln and adjusted underlying earnings (EBITDA) of around NZ$900,000.
CentralNic said the acquisition will enhance earnings and will also provide strategic benefits.
Ideegeo is the operator of the retail domain names website iwantmyname.com. CentralNic intends to deploy the design solutions developed by Ideegeo across the group's retail websites.
Ideegeo is one of the largest customers of Hexonet, which was recently acquired by CentralNic; consequently, the acquisition is expected to deliver operational cost savings through vertical integration as well as permanently locking in an important revenue stream for CentralNic.
Ideegeo currently only sells domain names, which opens up the possibility of selling CentralNic's extended product offering to Ideegeo's 80,000 customers.
"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," said Ben Crawford, chief executive officer of CentralNic.
In a separate announcement, CentralNic confirmed the acquisition of international domain reseller Hexonet has now been completed.
"This transaction marks another important step in CentralNic's strategy to rapidly consolidate the global recurring revenue domain name industry. Like CentralNic, Hexonet has a high level of recurring revenue and excellent customer retention. Its technically advanced global reseller platform and expert staff further boost our market share and competitiveness," Crawford said.