- CentralNic Group announced the acquisition of a portfolio of revenue-generating niche websites for $5.2 million in cash.
- The websites are expected to generate at least $1.9m in annualized revenue and $1.4m in annualized EBITDA post-acquisition.
- The acquisition is part of a vertical integration strategy to acquire some of the traffic sourced to its ad networks.
The global internet platform company that derives revenue from the sales of online presence and marketing services, CentralNic Group announced that the company has entered into an agreement to acquire a portfolio of revenue-generating niche websites for a consideration of $5.2 million in cash and assumed working capital liabilities in an asset deal from multiple sellers.
According to the announcement, the acquisition is expected to complete immediately and will be financed from available liquidity. The acquisition will be immediately earnings accretive.
The company expects the websites to generate more than $1.9 million in annualized revenue and $1.4 million in annualized EBITDA post-acquisition. CentralNic’s latest acquisition is a part of the company’s vertical integration strategy, providing the Group’s Online Marketing segment with proprietary, exclusive special interest traffic to monetize. Michael Riedl, CEO of CentralNic said,
« Exclusive access to proprietary website traffic is a pillar of our Online Marketing segment’s sustainable competitive advantage. This acquisition will give us more exclusive direct navigation traffic, augment margins for our fast-growing Online Marketing business and generate attractive cashflow returns. »