CNIC.L Share News (CNIC)

(Sharecast News) - Domain name and web services provider CentralNic Group has entered into a binding agreement to acquire Wando Internet Solutions for initial consideration of €5.4m (£4.67m), it announced on Monday.
The AIM-traded firm said Wando, based in Berlin, is a technology company operating in the fields of social marketing, display advertising and search engine marketing (SEM) advertising.

In the 2020 financial year, Wando generated unaudited revenue of €4.9m and unaudited EBITDA of €1.2m.

CentralNic said Wando's distribution network is an "important" sales channel, representing more than half its revenue, adding that through a closer vertical integration, it expected to grow Wando's sales.

The initial consideration, which was subject to customary adjustments for cash and net working capital, would be paid from the proceeds of the group's recent bond placement.

Under the terms of the agreement, the sellers of Wando could earn up to another €5.4m payable in the third quarter of 2022, subject to stretched performance targets being met.

"We are excited by the vertical integration that this acquisition brings. Wando provides us with a new platform, expert staff, and a growing, profitable extension to our existing business and we expect it to bring accelerated growth and augmented margins for our fast-growing monetization business," said chief executive officer Ben Crawford.

At 1408 GMT, shares in CentralNic Group were up 0.8% at 95p.