Minds and Machines Gets ICANN Approval, Completes ICM Registry Acquisition

Minds and Machines Gets ICANN Approval, Completes ICM Registry Acquisition

SANTA MONICA, Calif. — Minds and Machines Group Ltd. said in a regulatory filing today that it received approval from ICANN and has completed its purchase of ICM Registry, which operates the registry for the .xxx, .porn, .sex and .adult gTLDs.

Minds and Machines, a publicly traded company on the London Stock Exchange, provides registry services for about 100 niche gTLDs. It signed a purchase agreement with ICM Registry in early May.

With the ICM Registry acquisition, Minds and Machines paid $10 million in cash and issued 225 million new ordinary shares for the company.

For the 12 months ending Dec. 31, ICM Registry reported net sales of $7.27 million and net income of $3.5 million, from about 100,000 registrations, according to the regulatory filing.

In 2017, approximately 78 percent of revenue was renewal based and approximately 14 percent was generated from premium sales, the filing said.

In a statement, Toby Hall, CEO of Minds and Machines, said: "Our strategy is to a build a strong, annuity-based business founded on recurring revenues that will allow us to scale through a combination of acquisition, innovation and organic growth.”

“The ICM acquisition accelerates the significant progress already made from our existing portfolio and firmly positions us as one of the leading operators in our sector,” he said. “Not only will ICM deliver scale, strong recurring revenues and positive working capital; it also provides us with more geographical diversification, as their revenues are primarily derived from the U.S. and Europe.”