Minds + Machines purchases .XXX top level domain operator ICM Registry

Fresh TLD portfolio firm adds four domain names to its portfolio.

MMX (also known as Minds + Machines) disclosed today that it is acquiring ICM Registry, which operates the .xxx, .adult, .porn and .sex top level domain names.

MMX will pay $10.0 million cash plus 225,000,000 shares, which have a value today of $31.0 million. The shares are subject to lock-up periods and will not all be issued at once.

ICM Registry noted net sales of $7.27 million and net income of $3.5 million on its 2017 tax return.

.XXX is a sponsored top level domain name that was introduced in 2011. .Adult, .Porn and .Sex are part of the fresh top level domain program.

The buyout concludes MMX’s strategic review, in which it was determining if it made sense to be purchased or to acquire other assets.

Here are some notable points regarding the deal:

• ICM Registry founder Stuart Lawley will now be the biggest shareholder of MMX with regarding 15%.
• Afilias was a sizable shareholder in ICM and will now become a notable shareholder of MMX. Keep in mind that MMX recently went with competitor Nominet as the backend for its TLD portfolio. Afilias will continue to be the backend provider for ICM’s four top level domains.
• The deal will help MMX’s profitability. The firm plans to begin a dividend plan within the next 18 months.