(Alliance News) - CentralNic Group PLC late Friday said it is to acquire Team Internet AG for USD48 million from Matomy Media Group Ltd.
The internet platform firm on Thursday confirmed that it was in advanced discussions for the potential acquisition of Team Internet - a subsidiary of advertising technology provider Matomy Media.
CentralNic said it expects the acquisition to be immediately earnings enhancing and earnings accretive in 2020 before any synergies.
Munich, Germany-based Team Internet generated USD66.7 million of revenue and USD10.6 million of adjusted earnings before interest, tax, depreciation and amortisation in the 12 months to June 30.
"The acquisition of Team Internet is a natural extension of CentralNic's domain sales business and a major step in adding domain related web services to CentralNic's service offering. It is another web-based recurring revenue business that will be significantly earnings enhancing for the financial year ending 31 December 2020," said CentralNic Chief Executive Officer Ben Crawford.
In addition, CentralNic said trading for the third quarter of 2019 was in line with the "high end of analyst expectations".
The company reported unaudited revenue of USD77.1 million and adjusted Ebitda of USD13.1 million for the year to September 30.
CentralNic's shares closed up 3.2% at 49.00 pence on Friday, while Matony Media's stock ended 1.4% lower at 2.59p in London.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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