CentralNic Group PLC (LON:CNIC) shares bounced higher on Monday after it agreed to acquire Australasian domain name and hosting reseller TPP Wholesale in a A$24mln (£13.1mln) deal.
The AIM-listed firm, which provides registry services for top-level domain names (TLDs), said TPP would be an extension of its largest business unit into the Australian and New Zealand territories and was expected to be “immediately earnings enhancing”.
CentralNic added that there was also significant scope for cost synergies following the integration of the acquisition.
TPP is currently Australasia’s leading domain name and hosting reseller platform business with around 14,000 reseller customers and 840,000 domains under management including 19% of all ‘.com.au’ registrations.
Ben Crawford, CentralNic’s chief executive, added that the timing of the deal was “precipitous” as it allowed the company to participate in the proposed launch of a new ‘.au’ domain extension.
“We are delighted to become the leading supplier to domain name and hosting resellers in Australasia through this highly earnings accretive acquisition.”
In early trading, CentralNic shares were 4.4% higher at 59.5p.
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