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.boston was a “distraction”, says gTLD seller

Kevin Murphy, January 20, 2016, Domain Registries

The Boston Globe newspaper decided to offload the gTLD after its new owners decided it was a “distraction”.

That’s according to a report yesterday in the newspaper itself.

Last week, it was announced that Minds + Machines, which already runs a handful of geo-gTLDs, is acquiring the .boston contract for an undisclosed sum.

Today, the Globe reports that its owners thought .boston would be “a distraction from the Globe’s central business of providing information through its print and online outlets”.

“The .boston domain business was inherited by the current management team and is not perceived as core to the mission of supporting the highest quality journalism in the region,” it quotes the Globe’s VP of marketing as saying.

The newspaper was acquired by Boston Red Sox owner John Henry in 2013, a year after the .boston application was filed, according to the report.

The acquisition, which sees M+M buy 99% the Globe subsidiary in control of the gTLD registry agreement, is subject to ICANN approving the contract reassignment.

CentralNic to swell with $24m Instra buy

Kevin Murphy, December 8, 2015, Domain Registrars

CentralNic is set to grow revenue by almost three quarters by acquiring Australian registrar Instra for $23.7 million.

The acquisition is for AUD 33 million, AUD 30 million of which will be in cash.

CentralNic plans to raise £10 million ($15 million) with a share placement to help fund the deal.

“This acquisition will grow our current revenues by 70% and extend our retail capabilities to serve customers in the fast growing emerging markets, globally,” CEO Ben Crawford said in a statement to the markets.

Instra had revenue of AUD 14.8 million ($10.7 million) in its fiscal 2015, and was profitable.

CentralNic’s revenue for the first half of this year was £4.4 million ($6.8 million).

The deal makes CentralNic, which started life as a registry, a much larger player in the registrar market.

It acquired Internet.bs for $7.5 million a couple of years ago, which brought in $2.8 million of revenue in the first half of this year.

Instra offers 150 ccTLDs and all the gTLDs, according to CentralNic.

Endurance splashes out $1.1 billion on Constant Contact

Kevin Murphy, November 2, 2015, Domain Registrars

Endurance International is to acquire email marketing company Constant Contact for $1.1 billion.

The $32-a-share cash offer, a 23% premium on Constant Contact’s Friday closing price, has been approved by both boards.

Endurance counts registrars BigRock, Domain.com and ResellerClub among its portfolio of brands, which also includes hosting companies HostGator and BlueHost.

The company said the deal will push its annual revenue to over $1 billion for the first time.

Endurance has acquired over 40 companies in its history, according to CEO Havi Ravichandran, who described M&A activity as a “core competency”.

The deal, which is subject to regulatory and shareholder approval, will be funded with debt.

The company today reported a third-quarter loss of $15.4 million, about double its year-ago loss, on revenue that was up 18% to $188.5 million.

Afilias gives its gTLDs a kick up the bum with U-turn 101domain buy

Kevin Murphy, October 16, 2015, Domain Registries

Afilias, once one of the fiercest opponents of registries owning registrars, has acquired 101domain to gain its first significant foothold in the registrar market.

Wolfgang Reile, president and CEO of 101domain, said he would be quitting the company and that COO/CFO Anthony Beltran will be leading the new Afilias unit in future.

The acquisition, which closed September 2, was for an undisclosed amount, but I’d say it was easily a seven-figure deal.

When Afilias rival CentralNic acquired Internet.bs last year, it paid $7.5 million.

California-based 101domain is currently about a quarter of the size that Internet.bs was when it was bought, based on gTLD domains under management, with a little over 120,000 names on its books as of June this year, according to registry reports.

But the company is well known as a go-to registrar if you want a broad choice of TLDs — it says it currently supports over 900. Its ccTLD sales may make the company much bigger.

Getting its stable of registry offerings to market is one of the reasons Afilias was drawn to 101domain.

Afilias’ own portfolio of TLDs contain some semi-restricted strings — such as .vote, which has a no-domaining policy — that would not be automatically attractive to many registrars.

Afilias told DI:

This acquisition furthers our post-vertical integration strategy of establishing a capability that enables us to both service our registry customers and ensure an outlet for TLDs of our own that may not be easy to find at a traditional registrar. 101domain is expected to continue to operate as it does today.

Afilias actually already had a registrar division — Emerald Registrar, which does business from iDomains.com — but had fewer than 1,500 domains under management at the last count.

Its registry business has over 20 million domains.

If you have a long memory, you may recall that Afilias was once dead-set against the concept of vertical integration — registries and registrars under the same ownership — which in the post-2012 new gTLD world has become industry standard.

The ICANN working group that was tasked with reforming ownership rule was held in stalemate by Afilias and Go Daddy back in 2010, before ICANN finally broke the deadlock.

New gTLD portfolio registries including Uniregistry, Google, Minds + Machines and Rightside have registrar businesses already. Famous Four seems to be closely aligned with Alpnames, and Donuts is tight with Rightside.

Neustar becomes “world’s largest registry” with $87m ARI buy

Consolidation in the domain name industry continued last night with Neustar’s $87 million acquisition of Bombora Technologies, the holding group for ARI Registry Services and AusRegistry.

Bombora CEO Adrian Kinderis told DI that the deal makes Neustar the “biggest registry services back-end provider on the market”, as measured by the number of TLDs on its platform, which now weighs in at over 400.

Kinderis and Neustar registry VP Sean Kaine said that the acquisition — conceived as so many deals are, Kinderis joked, in a “drunken ICANN bar” — is not so much about consolidation and more about growth opportunities.

Neustar will be able to cross-sell its suite of identity, security and marketing services, which Bombora does not offer, into ARI’s 100+ TLD client base. It will also be able to pitch ARI’s consulting services to its own clients.

Neustar also gets a “beachhead” in the Asia-Pacific region. While Bombora may not be a hell of a lot closer to Asia than Neustar, it’s in a much more convenient time zone.

Neustar currently faces the losing about half of its annual revenue — some $475 million — due to the loss of its contract to administer telephone number portability in North America.

That contract has been won by Ericsson, but Neustar has sued the US Federal Communications Commission in an attempt to keep it.

The Bombora acquisition won’t exactly fill the gap. The company had $20.6 million in revenue in 2014 and is expected to contribute $8 million to Neustar’s top line in 2015.

The deal is for AUD 118 million, which works out to roughly USD 87 million. Kinderis and business partner Simon Delzoppo will be the primary beneficiaries — between them they held a majority shareholding in Bombora.

The deal includes all of the company’s subsidiaries: ARI, AusRegistry and new gTLD operators such as dotShabaka.

ARI clients will notice a change of branding — the ARI and Bombora brands are to go almost immediately — but no technical changes at first.

“We’re going to continue to operate two registry systems right now,” Kaine said.

One business where there will be even less visible change is AusRegistry, which operates .au.

The AusRegistry brand is staying and .au will continue to be run in Australia, per the terms of the company’s contract with ccTLD policy overseer auDA.

“The .au contract is very important to Bombora,” Kinderis said. “If we had thought there would be any negative impact to that contract we would not have embarked on a deal.”

Kinderis, whose new job title has yet to be agreed, said he expects to take a “prominent role” in Neustar’s registry business. He said he expects to stay with the company “for a long time yet”.

“I want to see Neustar snapping at the heels of Verisign and I’d love to be able to contribute to that,” he said. “We’ve been punching above our weight and now we’re one of the heavyweights.”