Company acquires more of its traffic sources.
CentralNic (AIM: CNIC), a rollup of domain name and online advertising businesses, announced a small acquisition today.
The company is paying $5.2 million for a collection of “revenue generating niche websites” from multiple sellers. It did not name the sites.
CentralNic said it is already monetizing part of the websites’ traffic, so it’s going vertical by acquiring some of the traffic sources to its ad networks. It has previously acquired some of the resellers on platforms it has acquired, as well as websites.
The company said the sites should generate $1.9 million in annual revenue, but this will translate into only $1.2 million of additional revenue because of the pass-through impact of already monetizing some of the sites’ ad inventory.
It will be interesting to see what CentralNic does next year. Earlier this month, Ben Crawford stepped down as CEO of the company after leading it since 2009. The company suggested it won’t be as acquisitive in the future, at least not with big deals. Instead, “it is intended that in the future, the emphasis of cashflow generated will be a more balanced approach of returns to shareholders, deleverage and complementary bolt-on acquisitions.”