CentralNic paid less than 4x adjusted EBITDA for the company.
Team Internet AG, a domain name monetization company, recorded revenue of USD $74 million for 2019 up to December 24. Its adjusted EBITDA for this period was USD $12.3 million.
CentralNic (London AIM: CNIC) acquired Team Internet at the end of last year, hence the odd reporting year.
This was up from the trailing twelve months numbers CentralNic reported when it announced the planned acquisition. At that time, it disclosed the numbers for 12 months to June 30, 2019. Those were $66.7 million and $10.6, respectively.
CentralNic notes that its acquisition price of $48 million was 3.9 times Team Internet’s adjusted EBITDA for 2019 up to December 24.
Like most companies, CentralNic’s share price has taken a plunge in the market turmoil. It closed at 61 pence yesterday, down from as high as 93.5 pence at the beginning of the year. It’s carrying a heavy debt load in the form of corporate bonds. Suddenly, that’s out of fashion.