(Alliance News) - CentralNic Group PLC on Wednesday said it has agreed to acquire a California-based domain name management business.
The London-based online services provider has entered an agreement to acquire Intellectual Property Management Co Inc, for an enterprise value of USSD7.6 million. The purchase price represents around 2.8 times IPMC's revenue in 2021 and around 7 times its adjusted earnings before interest, tax, depreciation and amortisation in 2021.
The purchase price will be settled from existing liquidity reserves.
"IPMC provides subscription-based corporate domain management services to enterprise customers including many globally recognised brands," CentralNic explained.
Once acquired, IPMC will be integrated into the enterprise channel within CentralNic's Online Presence segment. It expects the purchase to be immediately accretive to earnings. It will boost coverage and market share in North America and will provide synergies by streamlining procurement and operations.
"Domain management to protect enterprise customers against cyber squatters is a strategic priority for CentralNic. IPMC has been entrusted with the protection of some of the finest brands in the world, which will now join more than 1,000 corporations and organisations that already rely on CentralNic's domain management suite of services," said Chief Executive Officer Ben Crawford.
Shares in CentralNic were up 0.4% at 127.50 pence each in London on Wednesday morning.
By Elizabeth Winter; elizabethwinter@alliancenews.com
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