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Global domain registry provider CentralNic to acquire Team Internet for USD48 million

CentralNic has signed a conditional agreement to acquire Munich-based web services provider Team Internet from Matomy for a total of USD48 million.

CentralNic said it expects the acquisition to be immediately earnings enhancing and earnings accretive in 2020 before any synergies.
 
The acquisition will add an additional 40 staff in Germany, shifting CentralNic’s critical mass with almost 200 engineering and other staff members based there. All Team Internet management and staff will remain with the business following completion, with the three founders being retained on the supervisory board to guide the future growth of the business.
 
Ben Crawford, CEO of CentralNic, says: “The acquisition of Team Internet is a natural extension of CentralNic’s domain sales business and a major step in adding domain related web services to CentralNic’s service offering. It is another web-based recurring revenue business that represents an immediate c.50% increase in CentralNic’s revenue, adjusted EBITDA and Earnings Per Share. We are delighted to be able to add this very significant shareholder value while remaining within shareholder comfort levels on debt and interest coverage.”
 
Team Internet is a very efficient automation-focused company which derives cUSD1.6 million in revenues per staff with CentralNic’s focus being on opportunities to grow the business through its existing global sales and marketing networks and by bundling and cross-selling opportunities. Domain monetisation is a service that could potentially be bundled with an estimated 30 per cent of all domain name registrations. This represents a significant opportunity given that CentralNic currently has 18.6 million domains under management as of 30 June, 2019.
 
The acquisition is expected to complete in the week commencing 23 December 2019, after the EGM of Matomy.
 
Following completion, CentralNic will be one of the world’s leading providers of domain name monetisation services with a proprietary platform that enables domain name investors to generate recurring advertising income from their assets.

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