Dada Buys Leading Domain Registrar and Web Hosting Provider Namesco

July 24, 2007; 05:07 AM
Dada, a European market leader in internet domains, web hosting and professional e-mail, through its subsidiary company Register.it S.p.A., has acquired 100% of the share capital of UK company Namesco.

Founded in 1996, Namesco is the fourth largest provider in the UK of domain name and web hosting services and among the top 50 worldwide (source: Netcraft Company Analysis, January 2007). Based in Worcester and with offices in London, Namesco employs 59 highly qualified professionals and manages roughly 265,000 domains for a total client base of more than 80,000 paying customers. Thanks to agreements with the main international registries, Namesco is able to offer both its business and consumer clients internet domain registration and management in over 100 countries.

In the financial year 2006/2007 (4/1/2006 - 3/31/2007) Namesco recorded revenues of approximately 8.3 million pounds (around 12.2 million euros at current exchange rate) and EBITDA of 1.8 million pounds (around 2.7 million euros), roughly equal to a 22% margin. For the 2007/2008 financial year, the company forecasts a turnover of 9.8 million pounds (around 14.5 million euros), an EBITDA margin of 29% and net profits of 1.7 million pounds (around 3.5 million euros).

“Following the acquisition of the Spanish company Nominalia in August 2006, Dada’s purchase of Namesco is part of Dada Group’s expansion strategy, indicating Dada's priority in strengthening its presence in the professional online services business” commented Paolo Barberis, Chairman of Dada. “The investments in the domain and hosting sector which is represented by the Dada.pro division and already characterized by a solid international customer base, will allow Dada to further expand its offer towards more and more advanced services for companies and professionals online presence in a Web 2.0 perspective”.

In the first quarter of 2007 the Dada.pro division headed by Claudio Corbetta recorded a turnover of 3.9 million euros (equal to 11% of consolidated revenues for the Dada Group), an EBITDA of 1.1 million and an EBIT of 840,000. With the acquisition of Namesco the total number of clients in the Dada.pro division rises to 200,000 while domains grow to over 700,000, of which over 60% are international.

The acquisition was executed today as Register.it S.p.A., a wholly owned subsidiary of Dada S.p.A., bought 100% of the share capital of Namesco for 24.5 million pounds cash (around 36.2 million euro) fully paid at closing. The acquisition was financed in part by Register.it liquid assets and in part by means of a medium-long term bank loan valued at 30 million euros.

As of March 31, 2007, the short-term net financial position of the Dada Group was +15.2 million euros and in the first quarter of 2007 international activities represented 47% of consolidated turnover.

The guidance previously communicated by Dada to the financial community did not take into account the effects of extraordinary activities. Any relevant impact of the present transaction on Dada’s financial forecasts will be communicated where necessary.