Small acquisition will serve as a base for expansion in Latin America.
CentralNic (AIM: CNIC) has acquired the assets of NameAction Inc., a small domain name registrar based in Chile.
The deal was for approximately $1 million. NameAction will contribute about $2 million in recurring revenue and $0.2 million in adjusted EBITDA starting next year.
CentralNic says that, although the deal is small, it will serve as a launchpad for the company in Latin America. Ben Crawford, CEO of CentralNic, said:
While this acquisition is relatively small, it will be immediately earnings accretive and of strategic importance. NameAction is one of the best-known brands in the Latin American domain name industry, and their experienced staff represent an ideal team of experts to form a base for CentralNic’s expansion in the region, across our many products and channels.