CentralNic Group PLC (AIM:CNIC) announced it is buying a publishing network of revenue-generating websites for US$6.5mln in cash and assumed working capital liabilities from White & Case Ltd, in a deal that will provide more website traffic for its online marketing business.
The global internet platform company said the acquisition will be immediately earnings enhancing and will be financed from available liquidity. It is expected to complete around 1 October 2021.
The websites are expected to generate at least US$2mln in annualised revenue and US$1.5mln in annualised EBITDA post-acquisition. As CentralNic is already monetising around half the websites' traffic, this is expected to translate into US$1mln of additional revenue, US$0.5mln of reduced cost of goods sold (COGS) and US$1.5mln of EBITDA for the financial year 2022.
Ben Crawford, CEO of CentralNic, said: "Exclusive access to proprietary website traffic is a pillar of our Online Marketing segment's sustainable competitive advantage. This acquisition will give us more exclusive website traffic and will augment margins for our fast-growing Online Marketing business."
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