According to a press release I received this morning, CentralNic is set to acquire HEXONET for €10m (just over $11.3 million USD). The press release did not mention when the deal is set to close. CentralNic Group PLC stock trades on the London Stock Exchange under the CNIC ticker symbol, and the company has a market cap of just north of $111 million USD. HEXONET reportedly “manages over 3.8 million domain names,” and it seems to be steadily growing.
CentralNic shared the primary reason for this strategic acquisition in its press release, and it could have an impact on domain investors:
“While CentralNic has no immediate plans to change the HEXONET services and staff, one of CentraNic’s strategic goals is to develop the next generation domain name reseller platform. With CentralNic’s acquisition of KeyDrive, which includes the reseller platforms of Key-Systems and PartnerGate, the acquisition of HEXONET adds the complementary technologies, people and expertise to bring this future platform to fruition.”
The financial details of this deal seem pretty straightforward and are as follows:
“The total consideration is up to €10m, with €7m to be paid in cash at completion, and an earn out of up to €3m payable in 2020.”
HEXONET tweeted a link to CSO Robbie Birkner’s thoughts on the sale of the company along with some commentary about its past and future:
As change is in the air, catch up on our Robbbie Birkner’s thoughts on where we’ve been, the current changes at HEXONET, and what he has planned next. #domains #domainnews #hexonet https://t.co/dOkpq5g6ap
— HEXONET (@HEXONET) July 1, 2019
The press release I was sent has been shared below:
CentralNic Group PLC to acquire HEXONET for €10m
London, Monday 1st July 2019: CentralNic Group PLC (AIM: CNIC), the fastest growing company in the domain industry, announced today it has entered into an agreement to acquire HEXONET/1API, an industry leader in domain name platforms, technologies, and services for thousands of reseller clients from around the globe.
While CentralNic has no immediate plans to change the HEXONET services and staff, one of CentraNic’s strategic goals is to develop the next generation domain name reseller platform. With CentralNic’s acquisition of KeyDrive, which includes the reseller platforms of Key-Systems and PartnerGate, the acquisition of HEXONET adds the complementary technologies, people and expertise to bring this future platform to fruition.
Ben Crawford, CentralNic CEO, said: “This is an exciting day for CentralNic and the culmination of five years of discussions. We welcome HEXONET/1API into the CentralNic family and promise that HEXONET customers will continue to receive the same excellent service they currently enjoy under our stewardship. Our vision and commitment for 2020 and beyond is to bring together the HEXONET and Key-Systems teams in the creation of our next generation reseller platform and services. The goal is to deliver the best technologies, functionality and automation to provide resellers access to the widest range of products and services, while providing them the expert 24/7 customer service they expect.”
The total consideration is up to €10m, with €7m to be paid in cash at completion, and an earn out of up to €3m payable in 2020. Proprietors Tony Kim and Jens Wagner will be staying on with CentralNic/HEXONET in the positions of Managing Director and CTO respectively, while Robbie Birkner is taking personal time off.
“HEXONET is the perfect complement for CentralNic,” according to Jens Wagner, CEO of HEXONET. “Ben has made very smart acquisitions in recent years, particularly with the purchase of KeyDrive, our largest direct competitor in global domain reselling. Key-Systems and HEXONET are both leaders in reseller domain name platforms and technology. By combining the two companies and unifying the platforms, the opportunities are going to be tremendous. I’m sure this marriage of HEXONET with the CentralNic Group is going to be successful and exciting!”
For further information contact CentralNic Group
Ben Crawford (CEO) +44 (0) 203 388 0600
About CentralNic Group plc
CentralNic (AIM: CNIC) is a London-based AIM-listed company which develops and manages software platforms allowing businesses globally to use the internet for their own websites and email, as well as protecting their brands online. Its core growth strategy is identifying and acquiring cash-generative businesses with annuity revenue streams and exposure to emerging markets, and migrating them onto the CentralNic software and operating platforms.
CentralNic operates globally with customers in over 250 countries. It earns revenues from the worldwide sales of internet domain names and hosting on an annual subscription basis.
For more information please visit: www.centralnicgroup.com