Domain registry Minds and Machines Group (MMX) are all set to acquire registry service provider ICM in a part-cash part-equity deal. With this acquisition, MMX aim to drive their business by penetrating the U.S. and the European market leveraging ICM’s presence in the region.
MMX say that they have been impressed by ICM’s growth in different markets and their revenue growth has been solid. They also claim that since they saw synergies in terms of vision, mission and growth for nTLDs, acquiring ICM was the next logical step for MMX.
According to MMX, the acquisition will add nTLDs such as .ADULT, .XXX and many more to their portfolio. They also claim that this acquisition will see them dealing with 2 backend registry providers namely- Nominet for MMX’s current new gTLDs and Afilias for ICM’s nTLDs.
Speaking about the acquisition, Toby Hall, CEO of MMX, commented:
We are delighted to have entered this agreement. Further, it will strengthen the quality of our revenues, both accelerating MMX’s already fast-growing renewal base and improving the geographic make-up of our sales, given ICM’s revenues are primarily derived from the US and Europe.
We see this transaction as a major step forward in our ambition to introduce a progressive dividend policy over the next 18 months.
ICM say that they received many offers for the acquisition before finally settling for a USD 10M in cash and total 225,000,000 worth of ordinary shares (approx. USD 31M) deal with MMX. Explaining the same, Stuart Lawley, CEO of ICM commented:
MMX has a very dynamic management team. We received 4 offers in total for the business, some all cash and others a mixture of cash and stock. After lengthy, detailed negotiations and due diligence with the interested parties, the arrangement with MMX was clearly the best fit.
In closing, MMX said that the deal is set to close subject to ICANN’s approval.