Web Host Daily Internet PLC Takes Over Domain Registrar NameHog Ltd
January 27, 2014
Web host Daily Internet PLC has taken over domain registrar NameHog Ltd in a deal that has cost the company 150,000 pounds ($250,000) in a cash payment. The company made a subscription offer of 37.9 million shares to raise 625,000 pounds ($1,035,000) to finance the acquisition.
According to the company’s Non-Executive Director Chris Evans, acquiring companies can be cheaper than marketing to find new customers and purchasing NameHog is expected to immediately benefit Daily Internet’s bottom line. The company, which offers shared hosting and dedicated server options alongside domain registration services, generated 179,624 pounds ($297,780) revenue for the financial year ending April 30, 2012. Although the NameHog brand will remain, the company will be absorbed by Daily Internet and move to its offices in Nottingham, United Kingdom. Its approximately 2,200-strong active customer base will be immediately transferred to Daily Internet’s billing structure. NameHog’s single full-time employee will be absorbed by Daily Internet.
“We are delighted to announce the acquisition of NameHog which will be immediately earnings enhancing to the Group and offers quickly realizable operational synergies,” explained Daily Internet plc’s Managing Director, Abby Hardoon. “The acquisition is in line with our buy and build strategy and expands our client base and product and services portfolio, whilst providing numerous cross-selling opportunities. We are also delighted with the support from our existing institutional and other investors and we look forward to providing updates on progress and further opportunities."