RE: Cash shell8 Apr 2021 17:21
Sharecast News) - Top-level internet domain registry company Minds + Machines has conditionally agreed to sell the majority of its assets, it announced on Thursday, and transfer its rights and obligations under contracts and government approvals, to GoDaddy affiliate Registry Services, for $120m (£87.23m) in cash.
The AIM-traded firm said the consideration would be subject to adjustment based on the working capital of the subsidiaries acquired, and any customer deposits held by the company as at the date of completion.
Following the company's leadership changes in October, chief executive officer Tony Farrow and chief financial officer Bryan Disher conducted a review of the underlying profitability of the business, and the contribution of each top-level domain (TLD) asset.
As it set out in its trading statement in January, the initial conclusions of the review were that the business had "strong" recurring cash flows, but expected limited opportunity for material organic growth beyond its 'AdultBlock' services, without fundamental changes.
Minds + Machines said that as a result, it needed to consider a "multi-year transformation" of the company, further inorganic growth, or pursuing additional revenue opportunities outside the core business in order to leverage its relatively high fixed costs, or seek a merger or sale of the business.