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Mind
+ Machines (MMX)
- a
new gTLD registry
operator that administers 28
TLDs has acquired ICM
Registry LLC - another
new gTLD operator with four adult
related TLDs in its portfolio - .xxx,
.porn, .sex and .adult.
MMX (who is listed on the London
Stock Exchange’s AIM market under
the symbol MMX.L) paid $10
million in cash and $31
million in newly issued stock
(subject to ICANN approval)
according to UK-based business news
website ProactiveInvestors.co.uk.
At the same time, that site reported
MMX had its first profitable year in
2017, turning a $3.8 million
profit on $14.3 million in
total revenue.
The
MMX acquisition continues the
consolidation trend we've been
seeing in the new gTLD space. A
press release we received
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from
ICM about today's deal said ICM said
had attracted offers from several
other new gTLD registry operators
before accepting the MMX proposal.
ICM's
outgoing CEO, Stuart Lawley
said, “I strongly believe ICM’s
shareholders, customers and
employees will be well served by
this acquisition; 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.”
Lawley
will become the largest shareholder
in MMX with a holding just over 15%
and as part of the transaction, the
five remaining senior managers of
ICM (who will stay on with MMX) will
all have meaningful stock holdings
in MMX. Lawley said he is leaving to
pursue blockchain based Age
Verification business opportunities
with his new business AVSecure.com.
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MMX
CEO Toby Hall |
MMX
CEO Toby Hall told
ProactiveInvestors.co.uk,
""We are delighted
to have entered this
agreement. We expect the
acquisition to be earnings
enhancing in the current
year and believe it will
deliver scale, strong
recurring revenues and
positive working capital to
the company in 2018 and
future years. 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."
Hall
added, "2017 has been
about proving out the
business model: firmly
locking-in the operational
gains of 2016 to ensure a
profitable base, and
developing a long-term
growth strategy. It cements
MMX's position as a |
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leading
registry group in the new
gTLD sector as we develop
into a long-term annuity
based business." |
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