Group NBT, the UK’s leading domain name management and web hosting company and parent company of NetNames, is pleased to announce that it has acquired Indom SA (“Indom“), a provider of domain name management services in France, for a consideration of €16.9 million in cash. The vendors are warranting that at completion Indom will have €2.3 million of net cash on its balance sheet. The acquisition will be financed from the cash reserves of the Company and from additional debt of £4.5million. The transaction is expected to be earnings enhancing in this financial year.
Indom is based in Paris and is the leading provider of domain name management services in France. It provides services similar to Group NBT’s NetNames Platinum service and has an excellent customer list comprising many of France’s largest companies including half of the CAC 40. Indom was formed in 1999 and works exclusively in the French market. For the year ended 31 December 2009 Indom had audited revenue of €6.6 million with normalised profit before tax and amortisation of €0.5 million. In the eight months to 31 August 2010 revenue was ahead of the previous year on a year-on-year basis by 18% driven partly by one-off income from consultancy.
Following this transaction Group NBT will be the leading provider of domain name services to the French market. Indom will become part of NetNames and will provide opportunities for the full range of NetNames products, including brand protection products, to be sold into this market. Over a period of up to two years customers will be moved onto a common platform which will enable Group NBT to leverage the provision of systems and fulfilment services across a broader group.
Geoff Wicks, Chief Executive of Group NBT, said: “This transaction is of significant strategic importance for Group NBT and is precisely the type of acquisition we want to make. Not only does it provide scale in an important part of the European market which we will leverage in a number of ways, but it helps to cement our position ahead of our competitors in this attractive market. Indom has achieved an excellent position in France and has a reputation for good service.