LONDON, UK: CentralNic Group plc (AIM: CNIC) has entered into an settlement to purchase a portfolio of income producing area of curiosity web sites (Publishing Network) for a consideration of USD 5.2m in money and assumed working capital liabilities in an asset deal from a number of sellers.
The acquisition is anticipated to full instantly and can be financed from available liquidity.
The acquisition will be instantly earnings accretive. On a standalone basis, the web sites are anticipated to generate at least USD 1.9m in annualised income and USD 1.4m in annualised EBITDA post-acquisition.
As CentralNic is already today monetising a half of the websites’ traffic, that is anticipated to translate into c.USD 1.2m of additional revenue, c.USD 0.5m of reduced COGS and c.USD 1.4m of EBITDA as of monetary year 2023. The Acquisition is a half of a vertical integration strategy, offering the Group’s Online Marketing segment with proprietary, unique particular curiosity traffic to monetise.
As the corporate articulated in its RNS on 12 December 2022, it’s intended that within the future, the emphasis of cashflow generated will be a extra balanced approach of returns to shareholders, deleverage and complementary bolt-on acquisitions.
Michael Riedl, CEO of CentralNic, said “Exclusive entry to proprietary web site traffic is a pillar of our Online Marketing segment’s sustainable aggressive advantage. This acquisition will give us extra unique direct navigation traffic, increase margins for our fast-growing Online Marketing enterprise and generate attractive cashflow returns.”