Term changes to SK-NIC acquisition, Trading Update

Released : 01/12/2017 07:00

RNS Number : 0680Y
CentralNic Group PLC
01 December 2017
 

 

 

 Press Release

 

1st December 2017

 

 

The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014.  Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain. 

 

CentralNic Group plc 

 

("CentralNic" or "the Company" or "the Group") 

 

Changes to terms of SK-NIC acquisition

 

Trading Update

 

 

 

Changes to terms of SK-NIC acquisition 

 

The Company's agreement to acquire SK-NIC, the manager of the exclusive country code top-level domain for Slovakia, .SK., was announced on 25th August 2017.  Since that date, further to continued negotiation, the structure of the SK-NIC acquisition has changed, with the previous asset purchase agreement lapsing, and a new share purchase agreement ('SPA') being entered into on 30 November 2017, pursuant to which CentralNic will acquire the SK-NIC, a.s. legal entity and all associated assets and liabilities.  The SPA contains customary warranties and indemnities for a transaction of this type, and puts in place an arrangement which allows for any required recoveries under the SPA to be set off against the deferred consideration payable. 

 

The maximum total consideration for the acquisition remains unchanged at €26.12 million, however the initial cash consideration for the acquisition will now be slightly lower, at €20.27 million (previously €21.27 million), and the deferred cash consideration will now be slightly higher at up to €5.85 million (previously up to €4.85 million), and extended in time to cover a period until 2023.  The deferred cash consideration is dependent on SK-NIC attaining defined growth targets over the next three years. 

 

The acquisition, on the revised terms, is expected to complete in the near future. 

 

 

Trading Update 

 

The Company expects to trade in line with market expectations for the full year to 31 December 2017, after adjusting for a lower than anticipated contribution from SK-NIC as a result of the delayed completion of the acquisition. 

 

Ben Crawford, CentralNic CEO, said: "The acquisition of SK-NIC is a major, earnings enhancing acquisition for the Group.  Buying a country code top-level domain operator is always complex.  We are delighted to be in a position to complete this acquisition, and have already progressed the integration strategy as previously announced." 

 

                                                               -Ends-

 

For further information:  

 

CentralNic Group Plc

 

Ben Crawford (CEO) 

Don Baladasan, Chief Financial Officer 

+44 (0) 203 388 0600

 

 

Zeus Capital Limited - NOMAD and Joint Broker

 

Nick Cowles / Jamie Peel 

Corporate Finance 

 

John Goold / Alex Davies /Rupert Woolfenden 

Institutional Sales 

+44 (0) 161 831 1512

+44 (0) 203 829 5000

 

 

Abchurch Communications

Corporate & Financial PR Advisers to CentralNic 

 

Julian Bosdet

Dylan Mark

Alejandra Campuzano 

+44 (0) 20 7469 4631

+44 (0) 20 7469 4633

+44 (0) 20 7469 4634

 

centralnic@abchurch-group.com

www.abchurch-group.com

 

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 200 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.centralnic.com 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
UPDBMBMTMBAJTBR