UK domain register CentralNic buys NZ rival Ideegeo for $2.75m
London-based internet domain name registrar CentralNic Group said it has acquired New Zealand domain name firm Ideegeo Group Limited in a deal worth £2.75 million ($5.2m NZD).
The company, which is listed on the Alternative Investment Market at the London Stock Exchange, said the acquisition is both strategic and is expected to be immediately earnings accretive.
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 said it 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 also 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.
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, with an EBITDA (adjusted for the costs of the shareholders leaving the business) of $0.9m NZD.
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."
CentralNic's shares were unchanged at 58.5p on Wednesday morning.
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