CentralNic to swell with $24m Instra buy

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

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

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.”

CentralNic pays up to $7.5m for Internet.bs

CentralNic has acquired the unfortunately named Bahamas-based registrar Internet.bs for up to $7.5 million, in an effort to bolster its registrar business.
The deal is for a mixture of cash ($2.7 million), newly issued shares ($2.5 million) and a delayed performance-related payout of up to $2.3 million.
CentralNic is best known as a registry and back-end provider, but it also has a registrar, TLD Registrar Solutions, which is aimed primarily at registries that want to vertically integrate.
The acquisition means the company now has a medium sized ICANN-accredited retail registrar arm too.
Internet.bs has well over half a million gTLD names under management, according to registry reports. According to CentralNic, it has 28,000 customers in 199 countries.
The company made a profit of $730,000 last year, CentralNic said.

Rook Media acquires DomainSponsor

Oversee.net surprised many in the domainer community yesterday when it announced the sale of its flagship parking service, DomainSponsor, to upstart rival Rook Media.
The deal, for an undisclosed sum, means Oversee, once the parent to brands such as Moniker and SnapNames, now barely has a presence in the domain name industry at all.
Switzerland-based Rook Media, describing itself as “Europe’s largest domain monetization platform”, was formed three years ago by former NameDrive and Sedo executives.
US-based DomainSponsor, on the other hand, has been around since 2002.
Rook CEO Ash Rahimi told Domain Name Wire yesterday that both platforms will operate independently for the foreseeable future.
Oversee said in a press release that it will “now focus on more aggressively developing its growth businesses” which comprise web sites in travel, consumer finance and retail.
The company sold off Moniker and SnapNames to KeyDrive in 2012. KeyDrive has since sold on SnapNames to Web.com.
Oversee still has the DomainFest conference listed as one of its brands on its web site. Other than that, there seems to be little left of its presence in the domain industry.

Neustar pays $109 million for .CO Internet

Four years after relaunching the Colombian ccTLD .co as a global top-level domain, .CO Internet has been acquired by its long-time partner Neustar for $109 million.
The .co registry will become a wholly-owned subsidiary of Neustrar, which already runs .biz and .us, following the close of the deal.
.CO recorded revenue of $21 million in 2013, of which Neustar took $4 million as its back-end registry provider, according to Neustar.
The .co zone currently stands at about 1.6 million names, according to the companies. That seems to mean it added roughly 200,000 net new names in 2013, judging by its 2012 numbers.
The company relaunched .co in 2010, having jointly bid with Neustar for a Colombian government contract.
It was the last truly impressive TLD launch, with 200,000 registrations on day one and over 1 million in its first year.
While the space is still stuffed with speculators, unlike some other TLDs .co is also widely, visibly used by its intended audience — start-ups and entrepreneurs.
.CO is known primarily for its marketing acumen — some new gTLD registries could learn a thing or two — which Neustar CEO Lisa Hook raised as a selling point in today’s press release:

By combining .CO Internet’s innovative domain marketing capabilities with Neustar’s distribution network and technical resources, we will be able to broaden our registry services and the .co brand worldwide, while creating shareholder value.

Neustar expects the deal to close within a month.

Directi joins Domain.com family in $100m deal

Endurance International, the holding company behind brands such as Domain.com and HostGator has closed the acquisition of top ten registrar Directi and some related companies.
The acquisition, which was announced last September is worth between $100 million and $110 million — $25.5 million in cash and the rest in shares and a promissory note.
The deal includes Directi properties BigRock (a registrar), ResellerClub (the reseller-focused registrar), LogicBoxes (the registrar management service) and webhosting.info.
It does not include Radix Registry, the company that applied for 31 new gTLDs, 28 of which applications are still active.
Directi CEO Bhavin Turakhia “has agreed to be closely involved in the integration of the two companies”, but it doesn’t sound like he’s taking on a permanent role at Endurance.
Endurance may not be a familiar brand in and of itself, but its businesses include Bluehost, HostGator, Domain.com, FatCow, iPage and Mojo Marketplace.

Afilias acquires .pro operator RegistryPro

Afilias has acquired .pro registry manager Registry Services Corporation, which does business as RegistryPro, for an undisclosed sum.
The deal will see .pro domain names migrate to Afilias’s back-end, bringing the number of TLDs the company supplies registry services for to 17, the largest of which is .info .org.
It’s not yet clear whether the deal includes Zip.pro, a “local search” service operated by RegistryPro’s former parent Hostway using tens of thousands of self-owned zip code .pro domains.
(UPDATE: Afilias has confirmed that Zip.pro is staying with Hostway. The former owner of .pro is essentially now its biggest customer.)
Hostway bought RegistryPro in early 2004 shortly before .pro went live. The deal was somewhat controversial at the time.
Since May last year the company has been headed by CEO Karim Jiwani, a former Afilias executive. Jiwani will stay in place as president of RegistryPro, Afilias said.
While RegistryPro has been offering new gTLD back-end registry services since last June, the acquisition “is specifically in support of the .pro domain,” the Afilias spokesperson said.
The gTLD will be migrated to Afilias’ back-end infrastructure, he confirmed.
“A migration plan is being put into place,” the spokesperson said. “Current .pro customers will see no issues; the platform change will be invisible to them (and as easy as possible for registrars.)”
ICANN was told about the deal, but did not need to approve it because the corporate structure of RegistryPro has not changed, he said.
The .pro gTLD has about 45 registrars, though only four of them have taken more than 10,000 registrations. EnCirca, which signed up on day one, leads the pack with 13,000 domains.
However, Network Solutions and RU-Center came on board in 2008 and have been responsible for contributing most of the gTLD’s organic growth in the last few years.
Despite these modest improvements, .pro is still broadly considered very much an also-ran gTLD.
It had roughly 117,000 registered .pro domains at the last official count, but 43,000 of those are US zip codes registered by a shell company belonging to Hostway back in 2008.
It appears that this Zip.pro service is a similar concept to the Employ Media-backed Universe.jobs services – an exercise in mass domain development backed by the (former) registry itself.
At some point quite recently, some of these zip code domains have started going live with what could be loosely be described as “content”.
If you visit 94110.pro, for example, you’ll see a bunch of stuff about the Mission district in San Francisco, an old haunt of mine.

Tucows expands into 200 TLDs with $2.5m deal

Tucows has acquired EPAG Domainservices, a Bonn, Germany-based domain name registrar, for $2.5 million.
The deal is notable for the size of EPAG’s top-level domain catalog – it offers registrations in 200 TLDs compared to Tucows’ current 33.
Tucows hopes to offer all 200 to its 12,000-strong reseller channel before the end of the year, according to a press release.
CEO Elliot Noss said: “We expect that the deep expertise in registry integration we gain from EPAG will add invaluable bench-strength to our team as we prepare for ICANN’s roll-out of new TLDs.”
EPAG was previously owned by QSC, one of Germany’s largest ISPs.
The registrar has a portfolio of 400,000 customer domains under management, which Tucows is getting its hands on for an average of $6.25 per domain.
Tucows’ OpenSRS channel currently accounts for about 11 million domains, making it the third-largest registrar after Go Daddy and eNom.
More than half of EPAG’s registrations appear to be in ccTLDs. Webhosting.info puts its share of the ICANN gTLD market at 160,623 domains.