CentralNic Group PLC Term changes to SK-NIC acquisition, Trading Update (0680Y)

TIDMCNIC

RNS Number : 0680Y

CentralNic Group PLC

01 December 2017

 
  Press Release   1(st) 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 EUR26.12 million, however the initial cash consideration for the acquisition will now be slightly lower, at EUR20.27 million (previously EUR21.27 million), and the deferred cash consideration will now be slightly higher at up to EUR5.85 million (previously up to EUR4.85 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           [phone] 
  Officer                                             0600 
 
 Zeus Capital Limited - NOMAD 
  and Joint Broker 
 Nick Cowles / Jamie Peel 
  Corporate Finance 
                                           [phone] 
  John Goold / Alex Davies                            1512 
  /Rupert Woolfenden                       [phone] 
  Institutional Sales                                 5000 
 
 Abchurch Communications 
  Corporate & Financial PR 
  Advisers to CentralNic 
                                           [phone] 
                                                      4631 
                                           [phone] 
 Julian Bosdet                                        4633 
  Dylan Mark                               [phone] 
  Alejandra Campuzano                                 4634 
 [e-mail]      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

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December 01, 2017 02:01 ET (07:01 GMT)