LONDON (Alliance News) - Domain and web services company CentralNic Group PLC said Thursday it has acquired GlobeHosting Inc for EUR2.6 million.
Based in Delaware, GlobeHosting is a domain registrar and hosting company with a Romanian and Brazilian focus. GlobeHosting's revenue in the year to July was EUR849,000 and it recorded earnings before interest, taxation, depreciation, and amortization of EUR419,000.
GlobeHosting is expected to benefit from the adjustment to Romania's ".ro" country code, which is ongoing. Changes to the acquisition company's pricing structure will involve all ".ro" users renewing their domains.
CentralNic will fund theGlobeHosting acquisition through its own cash resources. EUR1.5 million is to be paid initially, with a deferred EUR608,000 to be paid after the first year and EUR450,000 after the second for a total of EUR2.6 million.
The move follows CentralNic's maximum USD55 million acquisition of domain name retailer and web hosting company KeyDrive SA in August.
"GlobeHosting plugs very easily into CentralNic's business operations and enhances the quality of the group's earnings. The transaction adds to CentralNic's access to the Romanian and Brazilian markets, which each exhibit attractive characteristics for sustained growth, as well as taking advantage of the upselling capabilities and economies of scale that CentralNic brings to the companies it acquires," said CentralNic Chief Executive Ben Crawford.
Shares in CentralNic were up 2.0% at 51.00 pence on Thursday.
