18th Jun 2018 12:34
LONDON (Alliance News) - Minds + Machines Group Ltd said Monday it has received approval for its USD30.6 million acquisition of ICM Registry LLC from the Internet Corporation for Assigned Names.
The internet domain name owner and operator said the acquisition will be funded through a USD10.0 million cash payment from its existing reserves and the issue of 225.0 million consideration shares roughly equivalent to USD20.6 million.
ICM owns four high value top level internet domains that are regulated by ICANN. In 2017, ICM's net sales totalled USD7.3 million and its net income was USD3.5 million.
A first tranche of 96.7 million shares has already been issued to ICM's vendors with a second 128.3 million share tranche to be issued on January 4, 2019.
"Not only will ICM deliver scale, strong recurring revenues and positive working capital; it also provides us with more geographical diversification," said Minds + Machines Chief Executive Officer Toby Hall.
"We expect that the acquisition will be earnings enhancing in the current financial year, with scope for further earnings enhancement through cost synergies, increased operational leverage and scale efficiencies in 2019 and beyond," Hall added.
Shares in Minds + Machines Group were down 1.6% at 6.79 pence on Monday.
Related Shares:
MMX.L