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.SE sells off $3.2 million registrar biz

Kevin Murphy, January 31, 2019, Domain Registries

Swedish ccTLD registry IIS has sold off its registrar business, .SE Direkt, to a local registrar for an undisclosed sum.

The buyer is Loopia, a web hosting company focused on the Swedish market. It will take over in a couple of weeks.

IIS said that starting February 12, lasting a few days, its customers’ domains will be transferred to Loopia. No disruption is expected.

.SE Direkt had 121,836 .se domains under management and 87,852 customers at the last count. Its 2018 revenue was expected to be around $3.2 million.

Loopia has around 225,000 customers. It does not appear to be ICANN-accredited, but you don’t need to be to sell ccTLD names.

It might actually be good news for departing .SE Direkt customers. Loopia sells .se domains for SEK 149 ($16.50), whereas .SE Direkt’s list price is SEK 270 ($29).

IIS said the sale was finalized following a review of competing bids following its October announcement that the unit was up for sale.

The .SE Direkt business has been on the decline for the best part of a decade, apparently deliberately. It was created as part of .se’s transition to a two-tier registry-registrar model in 2009.

IIS had expected to divest the business earlier, but customers did not jump ship as fast as expected.

Bad.monster? Two more gTLDs have been acquired

Kevin Murphy, November 14, 2018, Domain Registries

Two more new gTLDs have changed hands, DI has learned.

XYZ.com has picked up former dot-brand .monster from recruitment web site Monster.com, while newbie registry Intercap Holdings has acquired .dealer from Dealer.com.

Both ICANN contracts were reassigned last month.

Neither acquiring company has announced their purchases or published their launch plans yet.

That said, XYZ has already registered a few intriguing domains: bad.monster, good.monster, my.monster and go.monster.

It appears that go.monster — slogan: “It’s Alive!” — will be the registry’s launch site. It’s the only one I could get to resolve.

It’s the second example I can think of of a dot-brand gTLD being acquired by a registry that intends to run it as a generic.

In 2016, Top Level Spectrum acquired .observer from the newspaper of the same name.

Most dot-brands that don’t want their TLDs any more choose to retire them. That number is up to 45 now.

.dealer wasn’t technically a dot-brand — it had no Spec 13 in its contract — but its 2012 application certainly made it look like a dot-brand, with most of the domains reserved for Dealer.com and its affiliates. It looked defensive.

Shayam Rostam, chief registry officer of ICH, told me the plan for .dealer is to primarily target car dealers (also its former owner’s market) but that it will be unrestricted and open to all comers.

Intercap wants to get its January launch of .inc out of the way before turning its attention to .dealer, so we’re probably looking at mid-late 2019 for a launch, Rostam said.

It also needs to do some housekeeping such as moving the TLD to Uniregistry’s back-end.

What do y’all think about these TLDs? Could .monster be the next .guru? Could .dealer find a home in the burgeoning legal cannabis market? Comment below!

CentralNic buys .fans for peanuts

Kevin Murphy, October 8, 2018, Domain Registries

CentralNic has acquired the flailing new gTLD .fans for an undisclosed sum.

The value of the deal was low enough that publicly traded CentralNic was not obliged to disclose the purchase to the market, CEO Ben Crawford confirmed.

The ICANN contract seems to have changed hands — transferred to a CentralNic subsidiary call Fans TLD Ltd — back in August.

We revealed back in May that CentralNic was acting as a caretaker for .fans, and sister TLD .fan, after original registry Asiamix Digital failed to make enough money to keep the business going.

.fan, which Asiamix bought from Donuts but never launched, was sold back to Donuts in June.

Donuts took .fan to sunrise last week and plans to take it to general availability in December.

.fans domains, meanwhile, have been in registrar storefronts since 2015, but the current tally of registered domains is barely above 1,600.

Domains are still selling for around the $100 mark, roughly double the expected retail price of .fan.

$3.2 million-a-year registrar up for grabs

Kevin Murphy, October 1, 2018, Domain Registrars

Swedish ccTLD registry IIS is to sell off its registrar business, .SE Direkt, which is expected to bring in some $3.2 million in revenue this year.

The foundation said today that .SE Direkt has 121,836 .se domains under management and 87,852 customers, 66,819 of which are corporate.

That represents about 7% of the total .se market by domains.

IIS created the registrar in 2009 as part of its transition to a competitive two-tier sales model.

The registry explained in a note to press:

The idea was that it would work as a transition solution and that domain name holders would gradually transfer to other registrars. The number of customers has not fallen at the expected rate, but after 10 years it is on a level where IIS believes that the time is right to no longer continue with the registrar operations.

The buyer, which will have to be or become an IIS-accredited .se registrar, will get the customer base, domain database and two-year brand license, but none of the staff or other assets of the unit.

.SE Direkt sells .se names for 270 SEK ($30.27) per year.

Its revenue for 2017 was SEK 29.8 million ($3.3 million) and is expected to decline to SEK 28.3 million ($3.2 million) in 2018. The buyer would take over from the start of 2019.

There’s obviously a risk here that revenue is on a downward trajectory due to IIS’s aforementioned strategy of deliberately shedding customers.

Some effort to reverse this trend may be required by whoever takes over.

Stats on churn, usage, transfers and so on can be found in this IIS RFP (pdf).

IIS said that bids from interested parties must be submitted by October 17 and the foundation expects to select the winner by November 1.

Com Laude acquires Scottish rival

Kevin Murphy, September 11, 2018, Domain Registrars

Brand protection registrar Com Laude has picked up smaller competitor Demys for an undisclosed sum.

Demys, based in Edinburgh, is an ICANN-accredited registrar that specializes in the UK automotive, retail/leisure, media and consumer goods sectors.

It also acts as the registry manager and exclusive registrar for .bentley, the lightly-used dot-brand of luxury car-maker Bentley Motors.

It had around 12,000 gTLD domains under management at the last count, about 7,200 of which were in .com.

It’s about an eighth the size of Com Laude in terms of gTLD domains under management.

Demys has a very light footprint in new gTLDs, with local geo .scot — where it is the largest corporate registrar and fifth-largest registrar overall — being a notable exception.

London-based Com Laude said it was also interested in the company for its brand monitoring services and dispute resolution work.

Two of Demys’ top guys act as arbitrators for UDRP and .uk’s Dispute Resolution Service.

CentralNic acquired yet another company

Kevin Murphy, September 7, 2018, Domain Registrars

Acquisitive registry/registrar CentralNic has picked up another company, paying up to €2.56 million ($2.95 million) for a small Delaware-based registrar.

It will pay €1.5 million up-front for GlobeHosting, with the rest coming in two annual installments.

GlobeHosting may have a US corporate address, but it plays primarily in the Romanian and Brazilian markets.

It’s not ICANN-accredited. Instead, it acts as a Tucows reseller for gTLD domains (though I imagine that arrangement’s days are numbered).

The company had revenue of €849,000 for the 12 months to July 31 2018 and EBITDA of €419,000, CentralNic said.

The timing is arguably opportunistic. Earlier this year, Romanian registry ICI Bucharest (or ROtld) introduced an annual domain registration renewal fee for the first time (for real).

It recently started deleting names that do not pay the fee, a modest €6 per year.

CentralNic said that GlobeHosting, which appears to be notable player in the .ro market, is “expected to benefit” from this change.

Donuts gets bought by former ICANN CEO’s firm

Kevin Murphy, September 5, 2018, Domain Registries

Donuts is to be bought by a private equity firm that has a former ICANN CEO as a partner.

The company, which holds the largest portfolio of new gTLDs, has agreed to be acquired by Boston-based private equity firm Abry Partners for an undisclosed sum.

Not much info about the deal has been released, but one senses an ICANN alum’s hand at the wheel.

Former ICANN chief Fadi Chehade is a partner at Abry, having been initially employed as senior advisor on digital strategy back in 2016 after he left ICANN.

Abry, on its web site, says it focuses its investments on profitable companies, adding:

Depending on the type of fund, we target investments from $20 million to $200 million.

Since Abry’s inception, we’ve developed deep industry expertise in Broadband, Business Services, Communications, Cybersecurity, Healthcare IT, Information Services, Insurance Services, Internet-of-Things, Logistics, Media, and Software as a Service.

Since its formation in 1989, Abry has “completed more than $77 billion of transactions, representing investments in more than 650 properties.”

Donuts was founded by domain veterans Paul Stahura, Jon Nevett, Richard Tindal and Daniel Schindler in order to take advantage of ICANN’s new gTLD program..

It was initially funded by $100 million from Austin Ventures, Adams Street Partners, Emergence Capital Partners, TL Ventures, Generation Partners and Stahurricane.

It currently runs over 200 TLDs, the most populous of which I believe is .ltd, with over 400,000 names.

Donuts is the latest of a series of domain companies to exit via the private equity route, notably following Neustar and Web.com.

Chehade was ICANN’s CEO between 2012 and 2015. While he was not involved in the industry during the new gTLD’s program’s inception, he did oversee its early years.

More consolidation? Endurance said to be up for sale

Kevin Murphy, August 27, 2018, Domain Registrars

Endurance International Group is reportedly up for sale, perhaps the next piece of consolidation or privatization in a rapidly changing domain name market.

Bloomberg, citing unnamed sources, reports today that EIG is “is considering strategic options, including a possible sale”.

EIG owns domain brands Domain.com, BigRock, BuyDomains and ResellerClub, along with a bunch of hosting properties such as HostGator.

Bloomberg’s sources stressed that no final decision has been made, and that the company could remain public.

It’s currently listed on Nasdaq where it has a market cap today of almost $1.38 billion .

The company would be far from the first to change ownership in the last couple of years.

Most recently, Web.com (Network Solutions et al) announced a plan to go private in a $2 billion deal.

A year ago, Neustar went private in a $2.9 billion deal.

In terms of industry consolidation, we’ve more recently seen KeyDrive reverse into CentralNic and MMX buy ICM Registry.

KeyDrive reverses into CentralNic in $55 million deal

CentralNic this morning confirmed that it has signed a deal to merge with KeyDrive to dramatically grow its market share in the registrar and registry markets.

The deal, technically a reverse takeover, is worth up to $55 million, $10.5 million of which is performance-related.

KeyDrive is the holding company for brands including the registrars Key-Systems, Moniker and BrandShelter and the registries OpenRegistry and KSRegistry.

It is by far the bigger player in the registrar space. The combined company will have 7.1 million domains under management, 5.8 million of which will come from the Luxembourg-based firm.

“The acquisition of KeyDrive is transformative for CentralNic, significantly increasing the Company’s scale and giving it significant extra firepower in the domain name industry to rival the traditional major players,” CentralNic CEO Ben Crawford said in a statement.

CentralNic says the deal will make it the 11th-largest registrar in terms of gTLD domains under management and the fifth-largest registry back-end in terms of TLDs managed (which will hit 118).

KeyDrive had 2017 revenue of $58.26 million and adjusted EBITDA of $5.87 million. Operating profit was $4.3 million.

CentralNic had 2017 revenue of £24.3 million ($32.2 million), adjusted EBITDA of £6.6 million ($8.7 million) and operating profit of £1.8 million ($2.4 million). These numbers do not include the £3.2 million-a-year SKNIC business, which CentralNic acquired right at the end of last year.

KeyDrive CEO Alexander Siffrin will become COO of CentralNic and one of its largest shareholders, owning 16.4% of the combined company’s shares.

The acquisition itself is fairly complex.

CentralNic will raise $16.5 million cash in a share placement and it will issue $19.3 million of shares to a holding company majority-owned by Siffrin. The remaining $10.5 million is performance related and may be paid in a combination of cash and shares, mostly shares.

It’s all subject to shareholder approval at an August 1 general meeting.

Assuming the deal closes, CentralNic says its plan is to become the “GoDaddy of Emerging Markets”, though what this means in practice is not immediately clear.

It does seem that there will be some job losses as the company rationalizes staffing across its various locations.

As far as technical integration goes, CentralNic’s registrars will migrate to KeyDrive’s platform and KeyDrive’s registries will migrate to CentralNic’s registry platform.

The potential for a deal was first revealed in March, after a leak. Trading in its shares was halted as a result, but resumed this morning.

Web.com to be acquired for $2 billion

Web.com is to go private in a deal valued at roughly $2 billion.

The company, which owns pioneering registrars Network Solutions and Register.com as well as SnapNames and half of NameJet, will be bought by an affiliate of Siris Capital Group, a private equity firm.

The cash, $25-a-share deal has been approved by the Web.com board but is still open to higher bids from third parties until August 5.

The offer is a 30% premium over Web.com’s 90-day average price prior to the deal’s announcement.

While Nasdaq-listed Web.com has briefly topped $26 over the last year, you’d have to go back five years to find it consistently over the $25 mark.