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16 Jul 2018 | 09:32

CentralNic Group buys KeyDrive for at least $35.8m

Internet platform CentralNic Group said Monday it had agreed to buy KeyDrive S.A. and its subsidiaries for at least $35.8m, representing an enterprise value of $44.5m.

KeyDrive develops and operates software platforms used for selling subscription-based tools for businesses to operate online, including domain names, hosting, email, domain portfolio management and online advertising services.

In the year to 31 December 2017, KeyDrive generated revenues of $58.26m and adjusted earnings (EBITDA) of $5.87m.

The acquisition is expected to increase CentralNic's scale and product range, adding KeyDrive's strength in the domain reseller and corporate services market to CentralNic's existing expertise in the domain registry and retail registrar segments.

Under the terms of the deal, $16.5m in cash would be funded from the placing, and $19.3m in shares would be issued to Inter.Services S.A, a holding company whose largest shareholder is Alex Siffrin, CEO of KeyDrive.

A performance-based earn-out of up to $10.5m was also included -- a minimum of 15% of which would be settled in cash and up to 85% of which may be settled by the issue of additional shares.

The acquisition constituted a reverse takeover under the AIM Rules and would require shareholder approval at the general meeting scheduled for 10:00am on Wednesday 1 August, CentralNic said.

At 9:32am: (LON:CNIC) Centralnic Group Plc share price was -2.5p at 55.5p

Story provided by StockMarketWire.com
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