Domain name registrar Internet.bs (IBS) — CentralNic buys

CentralNic gobbles of up sizable domain name registrar in $7.5 million deal.

IBS Publicly traded CentralNic (LSE: CNIC) has purchased Bahamian domain name registrar Internet.bs (IBS).

The move gives CentralNic, right now positioned as a registry, a strong entry in the retail registrar market.

CentralNic is traditionally known for offering third level domain names, but it is the technical registry services provider powering dozens of fresh top level domain name applicants. Owning a sizable registrar gives its registry clients guaranteed market distribution.

IBS was founded by Marco Rinaudo in 2003 following he sold his hosting business. Gregg McNair later came on board as Chairman and helped position the firm for the buyout.

All IBS staff will continue with the firm post-buyout, Rinaudo stated.

“I am very excited to see the Firm that I founded and nurtured for more than 10 years enter this fresh phase of development,” stated Rinaudo. “The great working relationship that I have forged with [CentralNic CEO] Ben Crawford and the CentralNic team provides me with the assurance that my IBS clients will be well supported in the future and will appreciate the proposed broadening of services to be introduced by the combined team. I will be working alongside Ben to make sure that happens in the best interest of our established and fresh clients.”

IBS is probably in the top 20 registrars in terms of domains under management. It is in the top 50 for .com domain registrations and has clients in 199 countries.

CentralNic will pay up to $7.5 million for the registrar, which had profits following tax of $0.73 million last year. The firm will pay $5.2M up front, $2.7M in cash and $2.5M in equity that will be locked up for 12 months. The equity represents 3.42% of the firm. CentralNic will pay up to $2.3M cash in the future depending on performance.

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Pictured (left to right): IBS founder Marco Rinuado, IBS Chairman Gregg McNair, CentralNic CEO Ben Crawford.