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2015-07-31

Neustar Buys Bombora and ARI Registry Services for US$87 Million


Neustar, Inc. (NYSE:NSR), announced Thursday it had acquired Bombora Technologies Pty Ltd (Bombora), based in Australia, for AUD $118.5 million, or approximately USD $86.9 million. Bombora and its subsidiaries, which include ARI Registry Services, provide registry services for a number of top-level domains (TLDs) including .au, .melbourne, .sydney, and over 100 new TLDs. The acquisition expands Neustar's registry services, which operates the .biz, .us, and .co TLDs, in addition to over 300 new TLDs.
“With this acquisition, Neustar continues to gather momentum as a global leader in launching and operating TLDs.” said Lisa Hook, President and CEO of Neustar. “Managing a brand's digital presence through the creation of new TLDs has become a key component of the CMO's tool kit, which aligns with the services we offer in real-time authoritative identity. By combining Bombora’s strong team and market presence in Australia with Neustar’s industry leading organization and technical resources, we are positioned to expand our footprint to the Asia-Pacific region.”
According to Neustar, the Bombora acquisition is expected to contribute approximately USD $8 million in revenue, and about USD $1.1 million, of operating income in 2015, which reflects the adjustment for deferred revenue on a fair value basis in accordance with business combination accounting principles. Over the last two years, Bombora has grown revenue at a compounded annual growth rate of 12% to approximately USD $20.6 million, in 2014 with operating margins between 25% and 30%.

In 2014, Neustar reportedly acquired the registry operator of ccTLD .CO for US$109 million.

Neustar also released its Q2 2015 earnings Thursday which disclosed the following results for the second quarter 2015 compared to second quarter 2014:
  • Revenue increased 8% to $256.8 million
  • Marketing Services revenue increased 17% to $40.9 million
  • Security Services revenue increased 18% to $40.5 million
  • Net income increased 22% to $45.1 million
  • Net income per share increased 31% to $0.80
Principal domain name of Neustar, Inc. - neustar.biz
Neustar Investor Relations:  http://www.neustar.biz/about-us/investor-relations

About Bombora Technologies:
  • AusRegistry is the Registry operator for all Australian commercial domain names such as .com.au and .net.au, and non-commercial domain names like .gov.au and .edu.au.  
  • ARI Registry Services provides services including Managed Registry Services for multiple global generic Top-Level Domain clients. ARI Registry Services also sells Licenced Registry Software to international Top-Level Domain clients and provides global anycast DNS services under the DiscoveryDNS brand.
  • According to The Australian Financial Review | afr.com: "Bombora was founded 15 years ago by Adrian Kinderis and Simon Delzoppo with one computer, operating out of the front room of Mr Delzoppo's house. The acquisition means a handsome payday for the co-founders, who remain the majority shareholders in the company."

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See also: NeuStar's (NSR) CEO Lisa Hook on Q2 2015 Results - Earnings Call Transcript | Seeking Alpha and After losing its biggest contract, this Va. tech company is trying to go global - The Washington Post: "... in March the Federal Communications Commission said it would hand the contract for so-called number portability services to another firm. That work represents about half of Neustar’s business. Neustar has filed suit against the FCC to reverse the decision. But in the meantime, it is beginning to prepare for the transition and search for new ways to make up for the lost business...."