Company integrated two domain businesses funded by bond sale.
CentralNic (AIM: CNIC) has completed its acquisition of what was left of the former Melbourne IT’s reseller business. Called TPP Wholesale, the division includes a strong reseller base in the Australasia region. CentralNic paid AUD $24 million for the business.
Tucows acquired the bulk of Melbourne IT’s reseller business in 2016.
CentralNic says it plans to complete its acquisition of Hexonet, a reseller and retail registrar, by August 5. It is paying €10 million for the business that has 3.8 million domains under management.
The company is paying for the acquisitions through a €50 bond issue. This is the first time the company has tapped the bond markets to fund acquisitions.
When I first saw Ben Crawford doing his rollup, I figured it would be another Web.com rollup built around financial optics — classic beancounter rollup.
However, I have to say, that while there is some definite beancounter DNA, the talent is high and they are finding operating synergies.
It remains to be seen whether the new TLDs fully go mainstream among retail customers, how CentralNic has a diversified business and is finding synergies.
I would venture to say that guys like Akram Atallah @ Donuts could certainly learn a thing or two from the CentralNic strategy!