CentralNic acquires Romania and Brazil-focused domain host provider GlobeHosting
Source: Proactive Investors, September 6, 2018. https://www.proactiveinvestors.co.uk/companies/news/204307/centralnic-acquires-romania-and-brazil-focused-domain-host-provider-globehosting
The web domain services firm said the €2.56mln purchase would “fit comfortably” into its retail and reseller divisions.
CentralNic Group PLC (LON:CNIC) has acquired the business assets of GlobeHosting Inc, a Romania and Brazil-focused registrar and domain hosting provider based in Delaware.
The AIM-listed web domain services firm said the €2.56mln transaction, to be paid through an initial payment of €1.5mln with €608,000 and €450,000 to be paid on the first and second anniversaries of completion respectively.
CentralNic said the purchase would “fit comfortably” into its retail and reseller divisions, adding that significant adjustments in Romania’s ‘.RO’ country code would benefit GlobeHosting as internet penetration in the country increased.
The purchase is CentralNic’s third in nine months and follows its acquisition of subscription-based online business services provider KeyDrive in July.
Ben Crawford, chief executive of CentralNic, said the purchase would plug “very easily” into the company’s business operations and would enhance the quality of its earnings.
He added that the purchase added to the firm’s access to the Romanian and Brazilian markets, which “exhibit attractive characteristics for sustained growth”, as well as taking advantage of upselling capabilities and economies of scale the CentralNic would bring to GlobeHosting.
In early morning trading Thursday, CentralNic shares were steady around 50p.