CentralNic, a London-based software firm specialising in domain registration, is set to buy Slovakian counterpart SK-NIC AS for a reported €26m.
The firm will pay an initial €21.3m with a deferred consideration of up to €4.8m.
The €21.3m will be funded by the firm’s cash reserves and a loan from Silicon Valley Bank, which will also provide a £3m overdraft facility.
Ben Crawford, CentralNic’s chief executive, commented on the news: “SK-NIC is a major, earnings enhancing acquisition for the Group, which is wholly consistent with our growth strategy. The business will benefit significantly from CentralNic’s technology and expertise, to improve its security, resilience and growth, as well as bringing to the Group strong recurring revenues.
SK-NIC-AS is responsible for managing the top level ‘.sk’ internet domain in use in Slovakia.
“The .sk country code adds a substantial new product and SK-NIC’s network of over 2,100 local retailers extends our geographic footprint into an important new market with considerable growth potential,” Crawford concluded.
CentralNic says its reported revenue for the six months ended in June is expected to amount to £10.6m, representing a 19% increase when compared to last year’s £8.9m.
The acquisition is expected to complete in early September.