CentralNic buys online presence firm IPMC for $7.6m
Online presence and marketing service provider CentralNic has agreed to acquire California-based domain name management business Intellectual Property Management Company (IPMC), it announced on Wednesday, for an enterprise value of $7.6m in cash.
The AIM-traded firm said that represented 2.8x its 2021 unaudited revenue and 7x its 2021 adjusted EBITDA, subject to customary adjustments for net cash and working capital.
It said the purchase price was being settled from existing liquidity reserves.
IPMC provides subscription-based corporate domain management services to enterprise customers, including many globally-recognised brands, CentralNic said.
On acquisition, IPMC would be integrated into the enterprise channel within the company’s online presence segment.
The company said it expected better coverage and increased market share in the North American market, as well as synergies from streamlining procurement and operations.
It said the acquisition would be immediately earnings-accretive.
“Domain management to protect enterprise customers against cyber squatters is a strategic priority for CentralNic,” said chief executive officer Ben Crawford.
“IPMC has been entrusted with the protection of some of the finest brands in the world, which will now join more than 1,000 corporations and organisations that already rely on CentralNic's domain management suite of services.”
At 1216 BST, shares in CentralNic Group were down 1.17% at 126.5p.
Reporting by Josh White for Sharecast.com.