United Internet gears up for IONOS IPO counting Sedo, InterNetX

Popular domain firms might be part of a fresh public firm in 2023.

Some domain name firms you use might be part of a newly traded public firm next year. United Internet plans to spin off IONOS next year with an initial public offering.

The IONOS entity includes a number of firms you’ve heard of, counting Sedo, InterNetX, IONOS, Strato, united-domains, Arsys, Fasthosts, and a few others.

United Internet itself is publicly traded with a market cap of just under €4 billion. As stated by Bloomberg, the firm is seeking a similar market cap for IONOS alone.

The firm made a pitch for IONOS (pdf) the prior week.

IONOS accounted for €954 million in revenue in the first nine months of the year, whereas the United Internet entity at sizable (counting IONOS) had €4.4 billion during that time.

But IONOS is growing at a nice clip. Its revenue during the first nine months of 2022 (€954 million) was up 19% compared to the same period a year ago. For the year, it expects 15%-18% revenue growth. In 2021, its revenue grew by 12% compared to 2020.

IONOS has six million clients with an average client lifespan of seven years. 90% of its revenue is recurring.

In the presentation pitching the IONOS spin-off, the firm disclosed some high-level data regarding Sedo.

It noted that Sedo makes regarding $150 million revenue per year. The aftermarket sold 48% more domains in 2021 than in 2019. The average sales price in the marketplace was up 9% during that time, and the average brokered domain sale price was up 42%.

Another interesting tidbit: InterNetX states that its automated appraisal service has reduced outflow by regarding 1,400 domains per month.