CentralNic doubles up in domain monetisation


Event: Acquisition of Codewise
CentralNic announced the conditional acquisition of Zeropark and Voluum, together known as Codewise for $36m. Zeropark is an advertising exchange that allows domain investors to monetise internet traffic directly with advertisers. Voluum is a SaaS platform helping advertisers to manage the efficacy of their online campaigns.

CentralNic entered the domain monetisiation market via the acquisition of Team Internet in December 2019. Team Internet is the European market leader in domain monetisation and delivered 38% revenue growth in the first half of 2020. Codewise adds technology and customers to the monetization division of CentralNic.

Kestrel Insight
It is estimated that of the 370m domain names in existence today, 100m are owned by investors looking to gain from the sale of the name. Until that event, income can be earned by selling internet traffic that lands on those names. This is a practice that has existed since the commercialization of the internet, yet is poorly understood by mainstream equity investors. The acquisitions of both Team Internet and Codewise are of growing, cash generative businesses with high levels of recurring income and well invested technical platforms. We believe they will generate value for CentralNic for many years to come.

Kestrel’s portfolio updates should not be construed as investment research nor the provision of investment advice. It should be viewed as short term commentary only based on the latest economic statistics, company results or information on upcoming releases or events. It is only a brief unsubstantiated summary of Kestrel’s current opinion on such information.


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