LONDON (Alliance News) - CentralNic Group PLC on Monday said it entered into an agreement to acquire Australian domain name reseller TPP Wholesale for a headline consideration of AUD24 million, or around GBP13.0 million.
CentralNic shares were trading 14% higher at 65.00 pence each.
CentralNic, which sells subscription internet services, said the sum related to the acquisition will be paid in cash.
"The acquisition is the next step in CentralNic's strategy as a rapidly growing global consolidator in the recurring revenue domain name industry," the firm explained.
It added: "TPP Wholesale will be an extension in Australia and New Zealand of CentralNic's largest business unit, which supplies domain names to resellers globally including most of the world's top ten domain name retailers by volume."
TTP Wholesale is a carve out of certain trade and assets from ARQ Group Ltd, a company listed on the Australian Securities Exchange. It has 14,000 reseller customers and 840,000 domains under management.
Given the acquisition is a carve out from a listed entity, CentralNic expect to incur a number of one-off integration costs of AUD1.8 million, of which AUD700,000 will be in 2019.
