January 18, 2007 – (HOSTSEARCH.COM) – UK web hosting and domain name provider Group NBT has acquired Copenhagen-based domain name provider Ascio Technologies, it was announced recently. The company was acquired for £18.3 million ($36 million). Payment for the acquisition was made in cash, shares and options.
With the acquisition, Group NBT becomes the leading domain name provider in Europe and acquires offices in Denmark, Germany, Switzerland and Norway. The company already has a presence in the United Kingdom, France, Germany, Spain and the United States.
"This acquisition makes excellent sense for us and fits well with our strategy to develop our market leading position and to extend our geographic reach,” explained the Chief Executive of Group NBT, Mr. Geoff Wicks. “It gives us access to a significant part of the European market much faster than we could have achieved by organic growth alone and also provides good opportunities to increase our sales. At the same time we will be able to realize the benefits of scale we have planned for in building our systems and processes. We are delighted to be working with the Ascio management team which will strengthen the Group's ability to grow and develop throughout Europe."
Group NBT see significant cross-selling opportunities and enhanced earnings per share in the second half of its full financial year. The company also envisages operating margins converging over time with those now achieved by Group NBT. Prior to 2006 Ascio made a loss of £2.5 million ($4.9 million) but with better performance generated revenue of £9.6 million ($18.9) up to September of that year.
