In a surprise announcement, the popular UK ISP Namesco has been acquired by Dada, a Spanish and Italian domain registration and hosting services provider, for £24.5m:
Dada (listed on the Italian Stock Market, Star Segment MTAX: DA.MI), a European market leader in internet domains, hosting and professional e-mail, through its subsidiary company Register.it S.p.A., today 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 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".
These days it’s unusual to see a company that appears to have very little familiarity with both the UK market and Internet access acquire an ISP. That could be good news for Namesco’s customers as Dada may be unlikely to fiddle too much with the groups Internet access side. Then again you never know.
For the most part Namesco has been one of the UK markets more reliable small providers.
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