CentralNic Confirms Possible Reverse Takeover By KeyDrive (ALLISS)

14th Mar 2018 10:41

LONDON (Alliance News) - CentralNic Group PLC confirmed on Wednesday it is in talks over a potential reverse takeover, after the company's shares were suspended from London trading pending an announcement.

CentralNic, whose software platform supports subscription-based web services, including domain names, is in talks over a potential combination with KeyDrive SA.

The company expects the transaction to complete in the second quarter of 2018, but stressed there is no certainty a deal will be reached.

The two boards believe a combination would have "strong" strategic logic and economies of scale, creating a company with "advanced" technology platforms bringing in significant recurring revenue for every major customer type within the industry.

N+1 Singer Capital Markets Ltd and Zeus Capital Ltd are acting as joint brokers, while Zeus Capital is the nominated adviser.

Since the deal would constitute a reverse takeover, CentralNic's shares will remain suspended from trading. The stock was last quoted at 57.00 pence, giving CentralNic a market capitalisation of GBP55.5 million.

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