strategy (icon)

Growth Strategy

Growth drivers

Organic growth of the internet

As their customers get online, businesses need websites, email, ecommerce capabilities, etc.

Driven by telcos providing greater connectivity, cheaper access.

3 billion internet users, with focus on “the next 3 billion”

UN Sustainable Development Goal 9c: ”Provide universal and affordable access to the Internet in least developed countries by 2020.”

Mergers and acquisitions

Proven ability to source, complete and integrate acquisitions

Pipeline of attractive deals

Operational leverage through increased scale

Upsell and cross-sell

Domain name customers and resellers are typically also customers for other services

SMBs also use website hosting, email, SSL certificates, etc.

Corporations require outsourced domain portfolio management and online security services

Internet professionals require domain name trading tools

Emerging markets »

Domain names and associated services are paid for in advance

Economies of scale »

Fixed cost proprietary platforms which are highly scalable

Recurring revenues »

Services are provided on a recurring subscription basis

Growth strategy

CentralNic’s growth strategy is to act as the consolidator in a highly fragmented industry, acquiring and integrating highly cash-generative businesses, which have strong levels of recurring revenue and exposure to fast growing emerging markets, including China, Eastern Europe and Latin America. Migrating such businesses onto CentralNic’s proven, scalable, fixed-cost software and operating platforms, will allow us to combine state of the art, secure and resilient technical solutions with significant cost savings and build a business of significant size and scale with quality earnings.

Where other companies in our industry have succeeded in achieving billion dollar market capitalisations focused on the North American and European markets, CentralNic’s ambition is to become the largest scale company in its industry focused on emerging markets.

Core areas of strategic focus:

  • realising cost synergies through the integration of back-end registry platforms to CentralNic’s platform;
  • initiating cross-selling opportunities;
  • implementing an effective business integration of shared corporate services;
  • leveraging its platform by identifying selective value-accretive acquisitions.

Market opportunity

 AfricaAsiaEuropeLatAm /
Carrib.
Middle
East
North
America
Oceania /
Australia
World
% of World population
17%55%11%9%3%5%1%100%
Internet penetration35%48%85%67%65%95%69%54%
% Internet users11%49%17%11%4%8%1%100%
presence
Source: World Internet User Statistics 31 Dec 2017

Domain growth

Sources: William Blair Initiation GoDaddy Inc. 5 October 2017, Verisign Domain Name Industry Briefs

Infrastructure in place to support our growth strategy

Robust and scalable technical infrastructure

The market leader in successfully migrating from other platforms onto our own

Supportive bankers

  • Silicon Valley Bank

CEO, CFO and Head of Corporate Development proven in delivering successful roll-up strategies

Centralised group functions delivering economies of scale:

  • Finance and treasury
  • Marketing
  • Sales administration
  • Legal

Supportive existing shareholder base, including:

  • Schroders
  • Kestrel
  • Herald
  • Hargreave Hale
  • Unicorn
  • Living Bridge
  • Cavendish
  • Miton