Domain name registry service provider CentralNic is acquiring the entire share capital of KeyDrive.
KeyDrive is an internet solutions holding company that develops and operates subscription-based software platforms. These software platforms help businesses to operate online and sell domain names, hosting, email, domain portfolio management and online advertising services.
CentralNic said that the initial consideration is $35.8 million, representing an enterprise value of $44.5 million, and performance-based earn-out of up to $10.5 million.
“The acquisition of KeyDrive is transformative for CentralNic, significantly increasing the Company’s scale and giving it significant extra firepower in the domain name industry to rival the traditional major players,” said Ben Crawford, CEO of CentralNic.
“KeyDrive’s values and reputation within the industry match CentralNic’s. The acquisition makes strong strategic sense to CentralNic and is a leap forward towards becoming a global leader.”
CentralNic generates its revenue from sales of internet domain names and other web services, while KeyDrive is a pioneer in domain reselling and corporate services. KeyDrive generated a revenue of $58.26 million in 2017 and adjusted underlying earnings of $5.87 million.
By adding KeyDrive’s strength to its existing expertise, CentralNic aims to substantially increase its scale and product range.
Also read: Domain name registrations count reaches 333.8M in first quarter 2018: Verisign
“We share a vision and a passion to deliver the very best products and solutions to the market and to become one of the leading organisations in our industry. I am looking forward to working closely with my new colleagues in pursuit of that goal,” said Alex Siffrin, CEO and Founder of KeyDrive.
