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CentralNic boosts reseller biz with $11.3 million Hexonet buy

CentralNic is to acquire rival reseller-based registrar Hexonet for up to €10 million ($11.3 million), its fourth acquisition in the last 12 months.

Hexonet has over 3.8 million domains under management, according to CentralNic, sold either directly or via one of its over 1,000 resellers.

Hexonet’s primary ICANN accreditation, 1API.net, was responsible for roughly 760,000 gTLD domains at the last count, but appeared to be on the decline.

CentralNic said its reseller business will grow by about 28% in terms of domains due to the deal.

Hexonet had revenue last year of about €16.5 million ($19.4 million) and EBIDTDA of about €0.8 million ($0.9 million), and will immediately contribute to the bottom line, CentralNic said.

But it’s probably not great news for everyone — in order to receive the full €10 million Hexonet had to slash €300,000 from its budget.

CentralNic is paying €7 million in cash now, covered by the €50 million bond it recently issued, and will pay another €3 million in either cash or shares (its choice) on the one-year anniversary of the deal closing, expected this month.

Hexonet has offices in Canada and close to CentralNic’s recently acquired Germany operations.

Hexonet also acts as the de facto exclusive registrar for a handful of dot-brands, including .audi, .volskwagen and .bugatti, relationships that one imagines CentralNic’s registry back-end business could try to leverage.

In the last year, CentralNic has acquired KeyDrive, TPP Wholesale and GlobeHosting.