MMX shares rocket after deal (mostly) closes.
MMX (AKA Minds + Machines) (London AIM: MMX) announced today that it completed the sale of its top level domain names to GoDaddy.
There’s a small caveat: it’s still waiting on partner approval for .miami and .boston.
The deal was announced as $120 million for 28 strings. In a release today, the company said it has received $113.8 million, plus adjustments for working capital that transferred with certain subsidiaries, and a further US$13.3 million was paid into escrow. It will receive $1.4 million out of escrow when the .miami and .boston deals are complete.
The final tally will be for 27 top level domains, since Frank Schilling sold the partner domain .country in an auction earlier this year.
MMX will provide transition services to GoDaddy until no later than January 2022. GoDaddy will cover the cost of MMX’s expenses, including relevant employee expenses, during this time.
The net-net to shareholders is the deal provided 9.6 pence per share after transaction expenses and ongoing employee costs that GoDaddy won’t reimburse. That’s higher than the 8.8 pence it initially estimated. Shares are up about 15% today to 8.3 pence.
As it winds down operations, MMX will return capital to shareholders through an $80.0 million tender offer.