Proactive Investors - Run By Investors For Investors

Centralnic joins the domain name big boys with Keydrive acquisition

KeyDrive develops and operates software platforms to operate domain names
keyboard
Centralnic is doubling in size

CentralNic Group PLC (LON:CNIC) is a fast-growing wholesale, retail and enterprise supplier of domain names and associated services, that has global ambitions.

For the uninitiated, in the internet world, the top-level domain (TLD) is the label given to the very last section of a web address, located after the last dot – so suffixes such as .com, .org and .gov.

WATCH: CENTRALNIC GROUP PLC SET TO DOUBLE IN SIZE WITH KEYDRIVE ACQUISITION

Back in 2011, a body called the Internet Corporation for Assigned Names and Numbers (ICANN) ended the restrictions on naming TLDs, ushering a new era for many companies such as CentralNic that had prepared properly for this revolution.

Crucial to this has been its relationship with XYZ.COM, which owns the .xyz TLD, one of the most popular in the world.

In September, the company renegotiated and renewed its exclusive wholesaler contract with XYZ.COM.

CentralNic will receive a fixed fee based on the volume of .xyz registrations and subscriptions managed.

Acquisitions have also pulled their weight

CentralNic’s longer-term vision is to “join the ranks of world leaders in its industry, which include a number of multi-billion-dollar companies”.

Its growth strategy will focus on developing and scaling up its software platforms, while concentrating on growth areas, including China.

Hence the most recent and largest acquisition to date – Keydrive for US$35.8mln plus an earn-out of up to US$10.5mln.

KeyDrive develops and operates software platforms to operate domain names, hosting, email, domain portfolio management and online advertising services.

Revenues in 2017 were US$58.3mln and adjusted underlying earnings (EBITDA) US$5.9mln.

“KeyDrive's values and reputation within the industry match CentralNic's. The acquisition makes strong strategic sense to CentralNic and is a leap forward towards becoming a global leader,” said Ben Crawford, chief executive of CentralNic.”

View full CNIC profile View Profile

Centralnic Group PLC Timeline

Related Articles

Internet address bar
February 15 2019
In a February trading update, the firm said it had delivered a “strong” performance in 2018 with revenues for the year expected to be around £42.5mln compared to £24.3mln the year before
.com domain
April 08 2019
Minds & Machines full-year 2018 results showed an ‘exceptionally strong’ start to the current year, with recurring revenues now accounting for the majority of income
scientist in laboratory
March 07 2019
In a January update, Instem said trading had been in-line with expectations, helped by a 500% rise in orders for its SEND platform

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use