CentralNic completes acquisition of Team Internet

Domain name and web services provider CentralNic Group announced on Tuesday that the acquisition of Team Internet, a web service provider based in Munich, Germany, was now complete.

The AIM-traded firm also announced that, under the terms of the transaction, as well as cash consideration of $45m, it had agreed to issue 3,911,650 ordinary shares, credited as fully paid.

It said the consideration shares would be subject to a lock-in period of 12 months, during which the vendors of Team Internet would be unable to dispose of them, followed by a period of 6 months during which they could only do so with CentralNic’s consent.

As it announced on 18 November, the cash element of $45m - $3m of which was deferred - was being funded via a €40m further bond issue of its existing senior secured bond, further details of which were announced on 30 September.

The company said the tap issue had been subscribed by Macquarie Principal Finance, and would be admitted to the Oslo Stock Exchange within three months.

An application had been made to the London Stock Exchange for a listing in respect of the consideration shares to be admitted to trading on AIM, which was expected at 0800 GMT on 31 December.

“The acquisition of Team Internet is a natural extension of CentralNic's domain sales business and a major step in adding domain related web services to CentralNic's service offering,” said chief executive officer Ben Crawford.

“It is another web-based recurring revenue business that will be significantly earnings enhancing for the financial year ending 31 December 2020.”

At 0843 GMT, shares in CentralNic Group were up 3.36% at 77p.