CentralNic purchases Hexonet reseller for $3.4 million

Firm closes Hexonet transaction and buys one of its resellers.

Domain name firm CentralNic (AIM: CNIC) has completed its buyout of Hexonet, and scooped up one of its resellers for another NZD $5.2 million (USD $3.4m).

It’s noteworthy that the firm paid €10 million to acquire Hexonet and then secured one of its big resellers for an additional $3.4 million.

The reseller, Ideegeo Group Limited, sells domain names at IWantMyName.com.

Ideegeo has 80,000 clients and 180,000 names under management. Notably, it only sells domain names and not high margin services like hosting. This gives CentralNic an opportunity to sell other services into the client base.

For the financial year ending March 31, Ideegeo’s revenues were NZD $6.2 million (USD $4.2m), with an EBITDA (adjusted for the costs of the shareholders leaving the business) of NZD $0.9m (USD $0.6m).

CentralNic funded the buyout from its recent €50 million bond issue.