CentralNic Group PLC (LON:CNIC) shares surged on Monday as it acquired Team Internet, a Munich-based domain name monetisation services provider, for US$45mln.
The purchase, discussions for which were announced after the close on Friday, is expected to be “immediately earnings enhancing” for CentralNic’s current financial year and expand the group’s customer base and product set.
“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”, said CentralNic chief executive Ben Crawford.
CentralNic added that the purchase will be funded by US$45mln in cash, raised through an underwritten bond issue, and US$3mln in shares.
In a trading update accompanying the acquisition news, the company said it has continued to trade “in line with the high end of analyst expectations”, with adjusted earnings (EBITDA) for the period 1 January to 30 September 2019 of US$13.1mln alongside revenues of US$77.1mln.
The shares were 14.5% higher at 54.4p in early trading.
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