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CentralNic wraps up acquisition of web service provider Team Internet

CEO Ben Crawford said: "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"

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CentralNic Group PLC (LON:CNIC) shares rose on Christmas Eve as the company, which supplies domain name and web services subscriptions over its proprietary platforms to millions of businesses globally, said it has wrapped up its acquisition of Team Internet, a web service provider based in Munich, Germany.

In a Christmas Eve statement, Ben Crawford, CEO of CentralNic, said: "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. It is another web-based recurring revenue business that will be significantly earnings enhancing for the financial year ending 31 December 2020."

The company said that, as under the terms of the transaction announced on 18 November 2019, as well as paying a cash consideration of US$45mln, it has agreed to issue 3,911,650 ordinary shares in CentralNic to the vendors.

It pointed out that the stock is subject to a lock-in period of 12 months, during which time the vendors of Team Internet are unable to dispose of their shares, followed by a period of 6 months during which they may only do so with the company's consent.

The group noted that the cash element of the deal is being funded via a €40mln further bond issue of its existing senior secured bond which has been subscribed to by Macquarie Principal Finance.

In morning trading, CentralNic shares were 10.7% higher at 82.50p, while Matomy Media shares jumped 25.9% to 4.09p.

 -- Adds share prices --

Quick facts: Centralnic Group PLC

Price: 82.125 GBX

LSE:CNIC
Market: LSE
Market Cap: £155.09 m
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