PROJECT MAGPIE

Intellectual Property Acquisition Opportunity

Hilco Streambank is seeking offers to acquire the business and assets of a well-known domain registration,
web hosting, and data centre provider, with an extensive portfolio of clients across the UK.

magpie

Offer Deadline: December 18 2018 @ Noon GMT.

Contact Us

Opportunity Highlights

MAGPIE2

Hilco Streambank is conducting a sale and marketing exercise for the business and assets of a company (the “Company”) that has been operating in the domain registration, web hosting, and data centre industries for over 20 years. The Company is well-known for providing industry-leading customer service and services a large client base of over 2,500 businesses and individuals across the UK.

The Company currently manages 6,200 domains and services its clients from the Company’s headquarters in the UK. The Company does not outsource any of its customer service operations and is therefore able to offer clients knowledgeable and accurate advice, which has contributed to the Company’s annual customer retention rate of 75%.

The Company also provides data centre hosting services to a national portfolio of clients. The Company’s offering in this area includes rack space and co-location, server management services, VPS and security services. The Company facilitates this service line by renting space at a third-party facility and therefore does not carry the costs of running a large server warehouse. 

Opportunity

The Company’s management advise that the Company has built up a strong reputation amongst its client base over the years, with the Company maintaining a 75% annual customer retention rate and continuing to service many of its clients for over 10 years. The Company’s industry is focused on the economics of scale and so the opportunity could be of particular interest to an acquirer within the industry that is able to integrate the Company’s services into its own offering to reduce costs and benefit from the Company’s longstanding client relationships.

Historical Gross Margins for 2018

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Available Assets as Part of Business Sale

Client Contracts

The Company has contracts in place with its 2,500 clients, with the Company’s largest client contributing over £40k ($50k) to the Company’s annual revenue. Many of the Company’s clients have been with the Company for more than 10 years. 


Corporate Brands

The Company has historically operated under two corporate brands which are well-known in the market today. The brands are primarily marketed through SEO optimisation of the Company’s two websites. The brands are also supported by a portfolio of corporate social media accounts. 


Trade Marks

The Company has a registered UK trade mark protecting one of its corporate brands.


Website Content

The Company operates two websites for each of its corporate brands. The Company’s websites were developed in-house and generate around 100,000 annual views. 


Domains

The Company owns a portfolio of over 170 domain names, including domain names associated with the Company’s corporate brands in addition to many desirable standalone domain names that could have potential uses in other industries/markets.


IPv4 Addresses

The Company owns a /21 IPv4 address block containing over 2,000 IP addresses registered with RIPE since 2003. 


Hardware

The Company utilises a variety of network, IT, and server hardware in the day-to-day operations of its business.

Sale Process

Offers for some or all of the business and assets of the Company are due December 18, 2018 at Noon GMT.

Please contact Hilco Streambank to obtain an NDA and gain access to the virtual data room for information regarding the sale process. A Bid Submission Form for submitting bids for the business and assets is available on request. Please be aware that a buyer’s premium of 10% of the sale price is payable by the winning bidder.

Hilco Streambank will only use data you have agreed to share with us. You have the ability to view, change and delete data at any time upon request. Please view our privacy policy.


Interested Parties

Hilco Global will only use data you have agreed to share with us. You have the ability to view, change and delete data at any time upon request. Please view our privacy policy.

Contact Us

For further information about the sale process and access to diligence materials please contact the following Hilco Streambank representative: