Acquisition was small in monetary terms, but important in its signal.
According to public company financial reports, Sedo paid $825,000 for its acquisition of RevenueDirect in February. The purchase price included the customer base, RevenueDirect brand and all respective software.
The transaction price was not announced when the company was purchased in February, leading to speculation about the value of the deal. Many considered it small, and this is true from a dollar amount and perhaps the number of domains involved. But the deal was significant for a few reasons:
1. Sedo extended its relationship with Dotster, a registrar with over 1,000,000 domains under management.
2. It signifies future consolidation in the domain parking business, especially for smaller domain parking companies. (See Domain Name Industry Acquisition Watch).
3. It improves Sedo’s reach inside the United States, whereas the company is relatively stronger than its competitors outside the U.S.
Now that we know the sales price, we also have an idea of what comparable small domain parking companies might sell for. In this case it’s impossible to determine how much of the $825,000 purchase price was related to Dotster’s own domains and their monetization stream, client domains and their revenue stream, the technology, and the enhanced relationship with Dotster.