|
CentralNic Group PLC on Monday said it has entered an agreement to acquire a portfolio of revenue generating niche websites from multiple sellers.
The London-based web domain and services provider said the acquisition would be made for a $5.2 million cash and financed from available liquidity. CentralNic said the acquisition is expected to be completed immediately.
The company said the acquisition would be earnings accretive immediately, with the websites expected to generate $1.9 million in revenue, and earnings before interest, tax, depreciation and amortisation of $1.4 million on a stand-alone annual basis, after the acquisition.
‘As CentralNic is already today monetising a part of the websites’ traffic, this is expected to translate into circa $1.2 million of additional revenue, circa $500,000 of reduced cost on goods sold, and circa $1.4 million of Ebitda as of financial year 2023,’ the firm explained.
The acquisition is part of a vertical integration strategy, which will provide the group’s online marketing segment with exclusive special interest traffic which can be monetised, the company said.
Chief Executive Officer Michael Riedl said: ‘Exclusive access to proprietary website traffic is a pillar of our Online Marketing segment’s sustainable competitive advantage. This acquisition will give us more exclusive direct navigation traffic, augment margins for our fast-growing Online Marketing business and generate attractive cashflow returns.’
CentralNic shares were up 2.2% trading at 139.00 pence per share on Monday morning in London.
By Harvey Dorset, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2022 Alliance News Ltd. All Rights Reserved.
|
