CentralNic Group (AIM: CNIC ) has raised £30m through the successful private placing of 40m shares at 75p each in order to fund its acquisitions of businesses, Zeropark and Voluum.
The internet specialist agreed to acquire the two groups, known collectively as ‘Codewise’, yesterday for $36m (£28m). The move complements its acquisition of Team Internet, completed in December 2019, and will accelerate market share growth and expand CentralNic's monetisation revenue segment from suppliers and customers.
The acquisition is also expected to significantly enhance earnings immediately upon completion.
The Zeropark and Voluum businesses together serve over 6,000 customers across 190 countries. In the 12 months to 30 June 2020, on an unaudited basis, Codewise generated revenue of USD 60.3 million and pro forma adjusted EBITDA of USD 7.4 million.
Shares in CentralNic Group have more than doubled since 2019 and were trading 3.45% higher at 84p this morning following the announcement.
Today’s raise which represents 20.8% of the existing company's issued share capital will cover all material trade and assets pertaining thereto from three Polish based entities.
The proceeds will also allow the company to provide online marketing tools to its customers who procure domain names and other web services from CentralNic's existing businesses.
Commenting on the acquisitions on Thursday, Ben Crawford, CEO of CentralNic, said:
"We are delighted that Zeropark and Voluum platforms and technology, expert staff and business relationships are becoming part of CentralNic, boosting not only our recurring revenues and profits, but also our market share and competitiveness.”
He added, “Added to our existing capabilities, the Acquisition makes us a clear global leader, combining two of the most technically advanced monetisation platforms in the domain name industry, and the formidable teams that built and ran them."
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