Neustar to Acquire .CO Internet S.A.S.
STERLING, Va. -- March 20, 2014
Neustar, Inc. (NYSE: NSR), a trusted, neutral provider of real-time
information and analytics, today announced it has entered into a definitive
agreement to acquire .CO Internet S.A.S. and certain associated assets. .CO
Internet is the exclusive operator of the worldwide registry for Internet
addresses with the “.co” top-level domain.
Since its global launch in 2010, names under management for .co have grown to
more than 1.6 million in over 200 countries and territories worldwide. Neustar
has an existing partnership with .CO Internet to provide registry services and
infrastructure support for .co extensions, the top-level domain assigned to
“The acquisition of .CO Internet is a natural fit for us given our successful
partnership over the past four years and our domain name expertise,” said Lisa
Hook, president and CEO of Neustar. “By combining .CO Internet’s innovative
domain marketing capabilities with Neustar’s distribution network and
technical resources, we will be able to broaden our registry services and the
.co brand worldwide, while creating shareholder value.”
The acquisition of .CO Internet expands Neustar's registry services, which
maintains the .biz and .us top-level domains and has been selected to provide
services for up to 350 new domain extensions as a result of Internet
Corporation for Assigned Names and Numbers’ (ICANN) ongoing global domain name
To provide perspective, .CO Internet exited 2013 with an annual revenue
run-rate of $21million. However, business combination accounting principles
require Neustar to adjust the acquired deferred revenue to fair value. This
adjustment to fair value often results in a write-down of deferred revenue
that will reduce future revenue recognized as the services are performed,
typically over a one year period. During 2013, Neustar recorded $4 million in
revenue for its role as the back-end provider for .CO Internet, which will be
eliminated upon consolidation. In addition, results for the first quarter of
2014 will include pursuit costs associated with this transaction.
The acquisition is subject to standard closing conditions and is expected to
close within one month. Following the acquisition, .CO Internet, as a
wholly-owned subsidiary of Neustar, will continue to manage the .co domain
extensions from its headquarters in Bogota, Colombia.
About Neustar, Inc.
Neustar, Inc. (NYSE: NSR) is a trusted, neutral provider of real-time
information and analytics to the communications services, financial services,
retail, and media and advertising sectors. Neustar applies its advanced,
secure technologies to help its clients promote and protect their businesses.
More information is available at www.neustar.biz.
Safe Harbor Statement under the Private Securities Litigation Reform Act of
Statements in this press release regarding Neustar, Inc.’s proposed
acquisition of .CO Internet S.A.S. including, without limitation, benefits and
synergies of the proposed transaction and any other statements regarding
future expectations, beliefs, goals or business prospects constitute
forward-looking statements made pursuant to the safe harbor provision of the
Private Securities Litigation Reform Act of 1995. The company cannot assure
you that its expectations will be achieved or that any deviations will not be
material. Forward-looking statements are subject to many assumptions, risks
and uncertainties that may cause future results to differ materially from
those anticipated. Among the important factors that could cause future events
or results to vary from those addressed in the forward-looking statements
include without limitation, risks and uncertainties arising from difficulties
with the integration process or the realization of the benefits of the
transaction; risks and uncertainties related to doing business in Colombia and
in connection with the company’s relationship with the Colombian government;
and the reaction of the customers and distributors of the acquired business.
More information about potential factors that could affect the company's
business and financial results is included in its filings with the Securities
and Exchange Commission, including, without limitation, its Annual Report on
Form 10-K for the year ended December31, 2013 and subsequent periodic
reports. All forward-looking statements are based on information available to
the company on the date of this press release, and the company undertakes no
obligation to update any of the forward-looking statements after the date of
this press release.
Investor Relations Contact
Dave Angelicchio, 571-434-3443
Nicole Nolte, 571-434-5323
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