Domain name registry and registrar services provider CentralNic has entered into a binding agreement to acquire Wando for an initial consideration of $6.5 million. Berlin-based Wando is operating in the fields of social marketing, sisplay advertising, and SEM advertising.
Wando generated unaudited revenue of $5.6 million and unaudited EBITDA of $ 1.4 million in the fiscal year 2020. CentralNic’s distribution network will be an important sales channel for Wando. Through a closer vertical integration, CentralNic aims to grow Wando’s sales.
According to the announcement, the initial consideration, which is subject to customary adjustments for cash and net working capital, will be paid from the proceeds from the Group’s recent bond placement. Under the terms of the agreement, the sellers of Wando may earn up to another$6.5 million in the third quarter of 2022 subject to stretched performance targets being met. Ben Crawford, CEO, CentralNic, said,
“We are excited by the vertical integration that this acquisition brings. Wando provides us with a new platform, expert staff, and a growing, profitable extension to our existing business and we expect it to bring accelerated growth and augmented margins for our fast-growing monetization business.”