Domain name service CentraNic have acquired Delaware-based GlobeHosting in a USD 2.97 million deal. With this acquisition, CentraNic aims to penetrate multiple markets such as Romania and Brazil where domain and hosting business is picking up steadily after business growth.
According to CentraNic, Romania is developing economically with small and new businesses coming to the fore. They claim that these businesses are making efforts to boost their digital identity after RoTLD, the domain registry, decided to introduce registration fees for the .RO ccTLD.
The domain name service also claims that Brazil as a market is evolving with retail and reseller hosting businesses gaining momentum. They say that the businesses in the country are in an early adoption phase and decision makers are open to adding more products like domain names and SSL certificates to their portfolio.
By acquiring GlobeHosting, CentraNic claim that the former will compliment and fit comfortably into their Retail and Reseller divisions, two of the four key industry channels alongside Corporate and Registry. They also say that CentraNic will be able to leverage GlobeHosting’s strong presence in Romania and Brazil to provide customers with a cradle-to-grave approach for web hosting services.
Speaking about this acquisition, Ben Crawford, CEO of CentralNic, commented:
GlobeHosting plugs very easily into CentralNic’s business operations and enhances the quality of the Group’s earnings.
The transaction adds to CentralNic’s access to the Romanian and Brazilian markets, which each exhibit attractive characteristics for sustained growth, as well as taking advantage of the upselling capabilities and economies of scale that CentralNic brings to the companies it acquires.
CentralNic claim that this transaction is their third acquisition in nine months and that they aim to continue their industry consolidation strategy by expanding into key markets that offer significant growth opportunities.
Industry experts claim that CentralNic have also made some mention-worthy moves in the African market with their SBU Africa Registry, where they will be providing a hosting gateway solution to customers.