Details behind MMX sale to GoDaddy

MMX reveals details behind asset sale.

GoDaddy (NYSE: GDDY) announced yesterday that it is acquiring most of the assets of MMX (London AIM: MMX), aka Minds + Machines, for $120 million. Today, MMX issued a notice to shareholders about its planned sale.

The sale represents approximately 10 pence per sale, about double the closing price yesterday. After transaction costs, it’s about 8.8 pence per share. Shares in MMX are trading up 60% this morning to 7.35 pence.

This is an asset sale, so MMX will consider how to return cash to shareholders after the transaction closes. MMX will still have some activities to undertake, including providing transition services until as late as the end of next year.

GoDaddy will acquire these 28 strings:

.VIP .NRW .CASA .VODKA .XXX .FIT .MIAMI .FISHING .PORN .BEER .SURF .BOSTON .ADULT .YOGA .GARDEN .ABOGADO .WORK .FASHION .HORSE .RODEO .SEX .WEDDING .LUXE .DDS .LAW .BAYERN .COOKING .COUNTRY

GoDaddy will also acquire four MMX subsidiaries:

· MMX Bayern (holds .BAYERN)

· MMX China

· MMX NRW (holds .NRW)

· ICM Registry (holds .XXX, .ADULT, .PORN, and .SEX)

The transaction will require lots of approvals. The Chinese government will have to approve the MMX China transfer. MMX had lots of partnerships, including some with first right of refusal, that will also require approvals. (Notably absent from the list of TLDs is the troubled .London partnership, which MMX paid dearly to extract itself from.)

MMX has commitments from owners of 64% of shares to approve the transaction, so it expects the proposed sale to be approved.