24th Dec 2019 09:31
(Alliance News) - CentralNic Group PLC on Tuesday said it has completed the purchase of Team Internet AG, a web service provider based in Munich.
Meanwhile, Matomy Media Group Ltd reported the sale of its 90% stake in Team Internet. The company intends to use the proceeds for the full and immediate repayment of outstanding convertible bonds.
"It was a challenging year, and I would like to pay tribute to all parties involved in forming this transaction for demonstrating responsibility and a high level of cooperation," said Matomy Media Chief Financial Officer & Chief Operating Officer Ilan Tami.
Turning back to CentralNic, the company said, in addition to USD45 million cash consideration, it agreed to issue 3.9 million shares, which are subject to a lock-in period of 12 months, followed by a period of six months during which they may only sell the shares with the company's consent.
CentralNic said the cash portion will be funded via a EUR40 million further bond issue of its existing senior secured bond.
"The acquisition of Team Internet is a natural extension of CentralNic's domain sales business and a major step in adding domain related web services to CentralNic's service offering. It is another web-based recurring revenue business that will be significantly earnings enhancing for 2020," said CentralNic Chief Executive Ben Crawford.
Matomy Media shares were trading 27% higher in London on Tuesday morning at 4.13 pence each, while CentralNic shares were up 6.0% at 79.00p.
By Evelina Grecenko; [email protected]
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