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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.

Afilias buys the other half of .global

Afilias has acquired one of its new gTLD back-end customers, Dot Global Domain Registry Limited, the registry for .global.

It immediately makes .global Afilias’ best-performing 2012-round new gTLD.

The price of the deal, between two private companies, was undisclosed.

As DI reported last November, Afilias already owned 45% of the company, which had 2017 revenue of $1.9 million and a $320,000 loss.

.global is a relatively good new gTLD business, as new gTLDs go.

We’re looking at a business with probably still low-seven-digit annual revenue, with annual adds and renewals trending upwards.

It had over 48,000 domain under management at the last count, with about about 22,500 annual renews.

The names renew at $100 at GoDaddy, which with 30% of .global regs is the largest .global registrar.

NameCheap, the second-largest registrar (with 11%), renews at about $65.

Anecdotally, it’s a new gTLD that I regularly come across in the wild, which is still relatively noteworthy. It’s often used by multinational companies for global gateway sites.

Afilias said that because .global already runs on its back-end, there won’t be any burdensome migration work for registrars, just some “paperwork will need to be updated”.

In terms of domains under management, .global immediately becomes Afilias’ highest-volume new gTLD (excluding pre-2012 .info, .pro and .mobi).

Its biggest 2012-round TLD, from the about 20 it owns, was .red, with around 34,000 DUM.

New gTLD registry is latest billion-dollar unicorn

A new gTLD registry that used a different new gTLD for its original web site has merged to form a new company valued at a billion dollars using a new brand in a third new gTLD.

Combell Group announced this week that it has merged with TransIP Group, and that its combined valuation is over $1 billion.

They’re both European hosting companies. Together, they say that have 1.2 million customers and 600 employees.

The newly merged entity is called team.blue — that’s its brand and, using an Afilias-operated gTLD, its new primary domain.

As a privately held company with a billion-dollar valuation, it joins a list of companies called “unicorns”. For some reason.

Combell and TransIP both have domain registrar businesses and play primarily into the Scandinavian and Benelux regions of Europe.

Combell, which has its corporate site at combell.group, owns Danish registrar DanDomain, which was ICANN-accredited with about 20,000 domains under management until it allowed its accreditation to lapse at the start of the year.

TransIP, which was using a .eu domain, is ICANN-accredited, but has no gTLD domains to its name.

Curiously, the two registrars have sequential IANA IDs — 1603 and 1604.

Combell is also the registry for .gent, the new gTLD for the Belgian city of Ghent.

Dot-brand .bond has been acquired and will relaunch as a generic this July

The domain name’s Bond, dot Bond… or something.

Sorry.

ShortDot, the registry behind the .icu top-level domain, has acquired a dot-brand gTLD and plans to repurpose it as a generic.

The seller is Bond University, a newish, smallish university in Queensland, Australia, and the gTLD is .bond.

ShortDot co-founder Kevin Kopas confirmed the deal to DI tonight, and said the new owner hopes .bond will prove attractive to bail bondsmen, offerers of financial bonds and, yes, fans of the James Bond franchise.

There’s also the dictionary meaning of “bonding” with somebody in a familial, friendly or business sense.

A new Bond movie is due to come out next April, so .bond might pick up a few regs then, assuming the registry is careful not to too closely associate itself with the heavily-guarded IP.

Kopas said that the current plan is to launch a 60-day sunrise period July 9 this year. ShortDot is currently working on unbranding the TLD within its ICANN contract, to allow it to sell to an unrestricted audience.

Premium domains will be offered with premium renewal fees.

ShortDot also plans to move away from Neustar’s back-end to CentralNic.

Bond University never actually used its TLD, which would have been a single-registrant space for its own exclusive use. It’s been dormant since its 2014 delegation, with just a single placeholder domain in its zone file.

There are plenty of those. About 50 owners of unused dot-brands have chosen to terminate their ICANN contracts and simply fizzle away to nothing.

But a small handful of others have chosen to instead sell their contracts to registries that think they can make a bit of money marketing them as generic strings.

The most obvious example of this to date would be .monster, which XYZ.com recently relaunched as a quirky open generic after the jobs site Monster.com decided it didn’t need a dot-brand after all. It’s been on sale for about a month and has about 1,750 names in its zone file.

The first example, I believe, was .observer, which Top Level Spectrum acquired from the Observer newspaper in 2016. That TLD went on sale two years ago but has fewer than 1,000 domains under management today.

Kopas said that the plan is to sell .bond names for between $5 and $10 wholesale.

“Overall the goal of ShortDot is to offer domains that are affordable for end users and profitable for registrars,” he said.

It’s only the company’s second TLD. The first was .icu, which it bought from One.com (which hadn’t really used it) and relaunched in May 2018.

Since then, it’s grown extremely rapidly and is currently the eighth-largest new gTLD by zone file volume.

It had over 765,000 domains in its zone today, up from basically nothing a year ago, no doubt largely due to its incredibly low prices.

Before AlpNames died, it was selling .icu names to Chinese customers for the yuan equivalent of just $0.50.

Today, the domain is available from NameCheap and NameSilo, its two largest registrars, for about $1.50.

Remarkably, spam fighters haven’t highlighted much to be concerned about in .icu yet.

The TLD has a 6.4% “badness” rating with SpamHaus, roughly the same as the similarly sized MMX offering .vip, which is also popular in China, and lower than .com itself.

Compare to .loan, which has a bit over a million names and which SpamHaus gives a 28.7% “bad” score.

In other words, .icu seems to be doing very well, volume-wise, without yet attracting huge amounts of abuse.

It’s a neat trick, if you can pull it off. But is the success repeatable? I guess we’ll find out with .bond when it launches.

CentralNic grabs more of the reseller market with $16.5 million acquisition

CentralNic is living up to its self-described role as an industry “consolidator” with the acquisition of Australian domain wholesaler TPP Wholesale.

The company, assuming it manages to find the financial backing, will pay AUD 24 million ($16.5 million) for the business, currently a unit of ARQ Group (formerly known as Melbourne IT).

TPP has 14,000 resellers and 840,000 domains under management, including 19% of all .com.au registrations, according to CentralNic.

The company reckons the unit had revenue of AUD 17 million ($11.7 million) and EBITDA of AUD 3.9 million ($2.7 million) in 2018, which makes the purchase look like a bit of a bargain when compared to its acquisition of Instra a few years ago.

Donuts acquires its 242nd gTLD

Kevin Murphy, April 29, 2019, Domain Registrars

Donuts, the registry with the largest stable of new gTLDs, has added its 242nd string to its bow.

The company seems to have acquired .contact from, nominally at least, smaller portfolio rival Top Level Spectrum.

The ICANN contract for the gTLD was transferred to one of Donuts’ subsidiaries a couple weeks ago.

According to TLS CEO Jay Westerdal, while TLS was the signatory of the contract the “economic owner” of the TLD was Whitepages.com, an online directory services provider, which paid for the original uncontested .contact application.

Whitepages.com doesn’t appear in the application, the registry agreement, or the IANA records. I was unaware of the connection until today.

Despite being in the root since December 2015, .contact never actually launched. Donuts has not yet filed its launch dates with ICANN either, but it’s usually fairly speedy about pumping out strings.

Tucows splurges $30 million on Ascio

Kevin Murphy, March 19, 2019, Domain Registrars

Tucows has spent almost $30 million on rival channel-focused registrar Ascio Technologies.

The company announced this morning that the $29.44 million deal will add about 1.8 million domains to its portfolio of managed names, along with an extra 500 resellers.

Ascio was generating $4 million of annual EBITDA before the deal closed, Tucows said in a press release, adding:

The Ascio reseller base fits squarely with Tucows’ core customer profile — ISPs, web hosting companies and website builders serving quality businesses that reward outstanding customer service with long-term loyalty.

Ascio has been owned by CSC Digital Brand Services since 2016, when it was acquired as part of a bundle of registrars in the NetNames group.

As a channel play, it was not really a fit with CSC’s core brand-protection market. It is of course a fit with Tucows, which owns OpenSRS.

The deal, which closed yesterday, has reduced choice in the space, which may not sit well with some resellers.

Ironic eight-figure deal marks more Euro-registrar consolidation

Kevin Murphy, February 11, 2019, Domain Registrars

Slovakian registrar WebSupport, which is run by a local politician, has been acquired in a reported eight-figure deal.

The acquirer is Loopia, a Swedish registrar backed by Danish private equity firm Axcel.

The deal seems to have closed around the same time as Loopia’s acquisition of .SE Direkt from Swedish registry IIS, though news only broke today.

WebSupport reportedly hosts around 173,000 domains, though it’s not clear whether it acts as registrar for all. It’s not ICANN-accredited, but it does resell domains in a wide range of gTLDs.

It reportedly has annual revenue approaching €4 million and sold for “a two-digit figure in millions of euros”.

According to Vladimir Vano, Slovakian comms chief at CentralNic, which acquired .sk registry SK-NIC last year, WebSupport is the largest .sk registrar.

There’s a certain irony with WebSupport being sold into foreign hands.

The co-founder and majority owner of the company is Michel Truban, an entrepreneur-turned-politician who was closely associated with a campaign to have UK-based CentralNic’s acquisition of .sk blocked.

It was alleged (and denied) at the time that the campaign was party-political, though its main concern appeared to be that CentralNic would bastardize .sk into some kind of horrible domain hack.

Today, Truban wrote on his blog “I’m selling WebSupport and I’m going into politics”. In 2017, he co-founded the liberal Progressive Slovakia party.

He said the money from the deal would free him from inappropriate influence by “oligarchs and patrons”.

Google Translate says Truban wrote: “I had an offer that was about a million euros higher, but I declined it. Because it was from people with bad history and at the same time I wanted WS to get an international story.”

CentralNic expects flat profit as revenue almost doubles

Kevin Murphy, February 4, 2019, Domain Registries

London-listed domain firm CentralNic today gave investors a sneak preview of its 2018 financial performance.

The company expects its profits at the adjusted EBITDA level to be up only slightly — from £6.6 million ($8.62 million) to £6.7 million ($8.75) — compared to 2017.

But revenue is expected to soar from £24.3 million ($31.7 million) to £42.5 million ($55.5 million), largely due to the impact of its merger with KeyDrive, which completed in August.

KeyDrive was the holding company for brands including the registrars Key-Systems, Moniker and BrandShelter, and the registry providers OpenRegistry and KSRegistry.

The Luxembourgish firm reversed into AIM-listed CentralNic in a deal, described as “transformative” for CentralNic, valued at up to $55 million.

Most of the company’s revenue now comes from the registrar part of the business, though the registry division is the more profitable.

CentralNic said today that “subscription products” are now roughly 90% of total revenue.

The company expects to save £1 million ($1.3 million) this year by migrating its old registrars over to the KeyDrive platform and migrating its new registries onto the CentralNic platform.

It has also appointed KeyDrive’s former CFO as CentralNic CFO, replacing Don Baladasan. Michael Riedl has also joined the board of directors, while Baladasan remains on the board as group managing director.

Full, audited financial results will be announced in May.

XYZ reveals .monster gTLD launch dates

Kevin Murphy, February 4, 2019, Domain Registries

XYZ.com has quietly unveiled its launch plan for its recently acquired gTLD, .monster.

General availability, with no eligibility requirements, is due to begin April 1.

The 30-day sunrise period is due to begin in just a couple of weeks — February 18.

.monster was acquired late last year from recruitment web site Monster.com, which had intended to operate it as a dot-brand, for an undisclosed sum.

Before the acquisition closed, Monster and ICANN amended the registry contract to cut the special dot-brand terms that would have removed the need for a sunrise period and would have prevented the domain being sold to regular registrants.

XYZ also intends to run a week-long Early Access Period — where premium prices apply — starting March 21.

I quite like the idea of .monster as an open gTLD.

While it’s certainly not going to perform as well volume-wise as .xyz, say, I can see it fitting nicely into the “quirky” niche occupied currently but the likes of Donuts’ .guru and .ninja — not really viable as standalone TLDs, but decent enough as part of a portfolio.

The company is pitching the TLD as “a domain for creative thinkers, masters of their craft, and modern-day renegades.”