CentralNic Secures Funding for Codewise Acquisition: Expanding Reach in the Digital Marketing Landscape

CentralNic Group PLC (London AIM: CNIC), a leading domain name services company, has announced a strategic move to secure £30 million through the placement of 40 million new ordinary shares at £0.75 per share. This funding initiative is specifically designed to finalize the acquisition of Codewise, a prominent technology company specializing in solutions for the affiliate marketing industry.

The acquisition of Codewise, valued at USD $36 million, represents a significant step forward for CentralNic in its mission to broaden its service offerings and solidify its position within the rapidly evolving digital marketing ecosystem. Codewise boasts two core businesses that are highly relevant to CentralNic’s strategic objectives: ZeroPark, a pioneering zero-click domain monetization platform, and Voluum, a comprehensive ad tracking platform that empowers affiliate marketers with advanced analytics and performance optimization tools.

Strategic Rationale Behind the Codewise Acquisition

CentralNic’s decision to acquire Codewise is underpinned by several compelling strategic factors. Firstly, the acquisition aligns perfectly with CentralNic’s overarching goal of expanding its presence in the high-growth digital advertising and marketing sectors. By integrating ZeroPark and Voluum into its portfolio, CentralNic gains access to cutting-edge technologies and a vast network of affiliate marketers, thereby unlocking new revenue streams and market opportunities.

Secondly, the acquisition is expected to generate significant synergies across CentralNic’s existing businesses. The integration of ZeroPark’s domain monetization capabilities with CentralNic’s domain name services platform will create a more comprehensive and compelling offering for customers, enabling them to maximize the value of their domain assets. Similarly, the integration of Voluum’s ad tracking platform with CentralNic’s advertising solutions will enhance the company’s ability to deliver targeted and effective advertising campaigns, driving improved results for advertisers.

Thirdly, the acquisition is expected to be immediately accretive to CentralNic’s earnings per share (EPS), contributing to the company’s overall financial performance. Codewise has a proven track record of strong revenue growth and profitability, and its integration into CentralNic is expected to further enhance its financial performance.

Choosing Equity Financing: A Sign of Confidence

CentralNic’s decision to finance the Codewise acquisition through the issuance of new equity, rather than relying on debt financing, reflects the company’s strong financial position and its confidence in the long-term prospects of the acquisition. In recent years, CentralNic has successfully utilized bond offerings to finance other strategic acquisitions. However, the company’s significant increase in stock value has made equity financing a more attractive option.

The company’s stock closed at 86.75 pence, a substantial increase from just 40 pence in October 2019. This positive trend reflects investor confidence in CentralNic’s management team, its strategic vision, and its ability to execute on its growth strategy. By raising capital through equity financing, CentralNic avoids adding to its debt burden and preserves its financial flexibility for future investments.

Acquisition On Track for Completion

The Codewise acquisition is progressing smoothly and is on track to be completed on October 31, 2020. All necessary acquisition deliverables have been met, and the deal is now unconditional. This represents a significant milestone for CentralNic and underscores the company’s commitment to executing on its strategic growth plan.

ZeroPark: Revolutionizing Domain Monetization

ZeroPark is a leading zero-click domain monetization platform that enables domain owners to generate revenue from their parked domains. The platform leverages advanced algorithms and machine learning to deliver highly targeted advertising to visitors, maximizing revenue potential for domain owners. ZeroPark’s innovative approach to domain monetization has made it a popular choice among affiliate marketers and domain investors alike.

The platform differentiates itself by focusing on “zero-click” traffic, which refers to visitors who land on a domain directly, without clicking on a search engine result or advertisement. ZeroPark effectively monetizes this traffic by displaying relevant advertisements based on the domain name and visitor demographics. This approach provides a valuable revenue stream for domain owners who may not have the resources or expertise to develop content or drive traffic to their domains.

ZeroPark offers a range of features and tools to help domain owners optimize their monetization strategies, including detailed analytics, customizable templates, and dedicated support. The platform also integrates seamlessly with other popular domain management tools, making it easy for domain owners to manage their portfolio of domains.

Voluum: Empowering Affiliate Marketers with Data-Driven Insights

Voluum is a comprehensive ad tracking platform that provides affiliate marketers with the data and insights they need to optimize their campaigns and maximize their return on investment (ROI). The platform offers a wide range of features, including real-time tracking, advanced analytics, and automated optimization tools.

Voluum’s real-time tracking capabilities enable affiliate marketers to monitor the performance of their campaigns in real time, identifying trends and opportunities for improvement. The platform’s advanced analytics provide deep insights into campaign performance, allowing marketers to understand which traffic sources, ad creatives, and landing pages are driving the best results.

Voluum also offers a suite of automated optimization tools that help affiliate marketers automate repetitive tasks and optimize their campaigns for maximum performance. These tools include automated bidding, traffic allocation, and A/B testing. By automating these tasks, affiliate marketers can save time and focus on more strategic activities, such as developing new campaigns and exploring new market opportunities.

CentralNic: A Leader in the Domain Name Industry

CentralNic is a global leader in the domain name industry, providing a wide range of services to businesses and individuals worldwide. The company’s core businesses include domain name registration, domain name management, and domain name monetization. CentralNic also offers a range of other services, such as web hosting, email hosting, and website security.

CentralNic is committed to providing its customers with innovative and reliable domain name services. The company invests heavily in research and development to ensure that its services are always at the forefront of the industry. CentralNic also has a strong focus on customer service, providing its customers with dedicated support and expert advice.

The acquisition of Codewise represents a significant step forward for CentralNic in its mission to become a leading provider of digital marketing solutions. By integrating ZeroPark and Voluum into its portfolio, CentralNic is well-positioned to capitalize on the growing demand for data-driven advertising and marketing solutions.

Conclusion: A Strategic Move for Future Growth

The acquisition of Codewise by CentralNic is a strategically sound move that promises to unlock significant value for both companies. By combining CentralNic’s domain name expertise with Codewise’s cutting-edge advertising and tracking technologies, the combined entity will be well-positioned to capitalize on the rapidly growing digital marketing landscape. The funding secured through the issuance of new shares demonstrates investor confidence in CentralNic’s vision and its ability to execute on its growth strategy. With the acquisition on track for completion, CentralNic is poised for continued success in the years to come.