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CentralNic acquires Instra for $24 million, sells $3.6M in domains, and plans to raise $15M

CentralNic buys another domain name registrar.

CentralNic is buying Instra for USD $24M.
CentralNic is buying Instra for USD $24M.
Publicly traded domain name registrar and registry CentralNic (London AIM: CNIC) has agreed to acquire domain name registrar Instra Group for AU $33 million (USD $24 million), the company announced today.

The purchase price includes AU $30 million in cash and AU $3 million in stock, with AU $5 million held in escrow and paid out over the next five years.

To fund the acquisition, CentralNic plans to issue 25 million more shares at 40 pence each, raising £10 million (USD $15 million). The shares are being offered at a discount of 30% to yesterday’s closing mid-market price.

Understandably, existing shares are under pressure today because of this new share issue. Shares are down 18% to 47 pence each as of 9 PM EST.

Also, the company sold $3.6 million in premium domain names, partially to help fund the acquisition. (I wouldn’t be surprised if this includes one or more of the company’s 2 letter domain names. I’ll investigate.)

Instra generated revenue of AU $14.8 million (USD $10.6 million) in the fiscal year ending June. With 150 country code domain names available, the registrar has become a favorite of corporate clients trying to protect their brands. It also has a retail registrar under the OnlyDomains brand and offers a reseller service.

This is CentralNic’s second big registrar acquisition. It bought Internet.bs for $7.5 million last year.

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  1. Joseph Peterson says

    Anybody with a handy estimate of what this acquisition buys CentralNic – I mean in terms of domain registrations under management, distinct customers, or other assets?

  2. FixMatka says

    I wonder why Instra charges so high for a domain names ?.A .com is $50+ on Instra while others charge around $10 for the same.

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