Domain company continues to consolidate the domain industry.
Fresh off a bond issue of €50 million, domain name company CentralNic (London AIM: CNIC) is acquiring domain name registrar Hexonet for €10 million.
Hexonet is a reseller platform and also retail registrar with 3.8 million domains under management. It had €16.5 million revenue last year and an EBITDA of €0.8m.
The company has offices in Germany and Vancouver, Canada. Hexonet CEO Jens Wagner and CMO Tony Kim will join CentralNic as part of the deal.
CentralNic will pay €7 million cash up front and then €3 million in cash or equity on the first anniversary of the deal.
CentralNic is becoming somewhat of a rollup play for the domain name industry. Recent acquisitions include KeyDrive, part of Melbourne IT’s reseller business, and the .sk domain name.
CentralNic bought KeyDrive for a 10x and now Hexo for a 12x multiple.. Pretty awesome deals. Both CEO‘s are smart guys, no idea why they would sell this cheap. Maybe they saw the business going downhill.
Most likely as their business wasn’t doing money, I would guess.
Sven Hansen says
This makes sense…
By the way:
Hexonet is back in the key-systems stable