registrars Brisio Innovations to Acquire NameSilo

[Arca]

Brisio Innovations to Acquire NameSilo, LLC, Plans to List as a Separate Public Company

Brisio Innovations Inc. (CSE: BZI) (OTC Pink: NTCEF) (the "Company") is pleased to announce that it has signed a definitive share purchase agreement (the "Definitive Agreement") with NameSilo, LLC ("NameSilo") whereby the Company has agreed to acquire all of the issued and outstanding securities of NameSilo (the "Transaction").

With a priority of no interruption to existing customers or NameSilo's growth trajectory, the Transaction will not impact the existing operations of NameSilo and the founders, who are also the owner/operators of NameSilo and who will continue in their current roles and continue operating the business. Further, there are no planned changes to the system infrastructure or operational policies of the business.

NameSilo is a low-cost provider of domain name registration and management services, and is an ICANN-accredited registrar. NameSilo is a high growth registrar with nearly 1.5 million domains under management, and over 85,000 customers from approximately 160 countries. According to RegistrarOwl.com, which provides domain registrar industry statistics from ICANN, NameSilo is the 6th-fastest growing registrar in the world based on percentage growth of new registrations, and 6th-fastest growing registrar in the world when based on net new registrations, behind household names such as Google, GoDaddy and Alibaba.

"We are excited to enter this new phase of the NameSilo journey," said Michael Goldfarb, founder and Managing Member of NameSilo. "We couldn't be happier to find a partner with a track record of success like Brisio, and we look forward to working with them to build upon the success of NameSilo. Our customers and partners will continue to receive the same excellent service they are accustomed to and they will enjoy the benefits of access to additional resources that will be made available."

NameSilo recorded approximately US$11.1 million in annual recurring billings in 2017 up from US$6.9 million in 2016. It has grown its domain names under management from approximately 745,000 domains at the beginning of 2017 to over 1.35 million today, a growth rate of over 65% versus industry averages of approximately 7%. Additionally, NameSilo maintains a customer retention rate of approximately 87%.

Under the terms of the Definitive Agreement, the Company will acquire all of the securities of NameSilo and, in consideration of which, the Company will pay a total of US$9,511,500 (the "Purchase Price") to the members of NameSilo (the "NameSilo Members"). The closing of the Transaction is anticipated to be July 2, 2018.

Further, NameSilo Members will be entitled to certain earnout payments provided that the business achieves a specified EBITDA. All earnout payments will be made no later than August 15, 2018 and will be payable in cash and shares.

After completion of the Transaction, the Company intends to spin-out NameSilo as a separately listed entity on a Canadian stock exchange. The board of directors of the Company will provide further details on the proposed spin-out on closing of the Transaction.

CEO Paul Andreola states, "We are extremely pleased to have found a world class company that meets our criteria of high growth, profitability, high customer retention and customer satisfaction. We look forward to working with the NameSilo team to continue to build the brand and provide their customers outstanding value and service and to meet their ongoing needs."

The Transaction is subject to customary conditions contained in the Definitive Agreement as well as approval of the stock exchange, and the Company completing sufficient financing to satisfy the Purchase Price. If the Company is unable to close the transaction, the Company will be required to pay a break fee to NameSilo.

Brisio Innovations Inc.
Paul Andreola
President, CEO and Director
(604) 644-0072
www.brisio.com

About Brisio Innovations

Brisio Innovations Inc. invests its capital in companies and opportunities which management believes are undervalued and have potential for significant appreciation. The company makes investments in both public and private markets and focuses on opportunities in a wide variety of industries excluding the resource and resource service sectors. Brisio does not invest on behalf of any third party and it does not offer investment advice.

Disclaimer for Forward-Looking Information Certain statements in this news release are forward-looking statements, which reflect the expectations of management regarding potential future investments by the Company. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management's current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause the Company's actual results to differ materially from those expressed or implied by the forward looking statements.

Source.

 

[xeroox]

Offtopic. Will you provide any new coupon to celebrate the aquisition?
And congrats!

 

[namesilo]

Offtopic. Will you provide any new coupon to celebrate the aquisition?
And congrats!

Ha! A very good idea

Give us a few days and let us think of something...

 

[xeroox]

Ha! A very good idea

Give us a few days and let us think of something...

Well we are all your fans. You know where to find us

 

[creataweb]

Congrats - hope it all works out well and you become a juggernaut but stay the same in regards to customers

 

[namesilo]

Congrats - hope it all works out well and you become a juggernaut but stay the same in regards to customers

Thanks! Yes, that is certainly our goal and something we are very strongly committed to doing.

 

[Kassey Lee]

I have moved most of my domains to NS. Only one last batch to go this month. BECAUSE their service is superb! Super fast and responsive! And prices are very competitive!

Now, the fact is: the boss has changed, and will change again when it is listed. I, for one, will be watching and preparing to move on if thing goes downhill.

 

[namesilo]

I have moved most of my domains to NS. Only one last batch to go this month. BECAUSE their service is superb! Super fast and responsive! And prices are very competitive!

Now, the fact is: the boss has changed, and will change again when it is listed. I, for one, will be watching and preparing to move on if thing goes downhill.

Thanks - appreciate the kind words! Thanks also for trusting us with your business, and we will not give you a reason to move

 

[SuperBrander]

@namesilo Congrats and good luck. You're a good registrar and I hope this change will mean good things for domainers. If you're planning on positive changes... please make fixing the expired domain auctions a priority.

1. List expired domains at a point where owners can't renew the domains anymore or at least close to that point. Having to sometimes wait 30 days or so to know if a domain is renewed or not when the owner usually renews is maddening. 2. Stop forcing people to pre fund their account, then when the owner renews the expired domain and the sale becomes void, forcing the buyers to wait 60 days from the point of purchase till they can get the money back. I understand that you're afraid from charge backs but this practice isn't done by any other domain registrar and it's basically holding your clients' money hostage for 2 months on top of a failed sale.

Thanks and again- good luck.

 

[offthehandle]

Thanks for your well-wishes and feedback - they are very much appreciated!

Yeah, we've been involved on both sides of the equation in previous businesses as well. We've seen good intentions get derailed in the ways you and others have listed here, and it is a shame when that happens. While we of course can't give a 100% guarantee how things will ultimately work out (whether we took this route, stayed the course or went another direction), I can tell you that we feel really good about the future of the business and the entire acquisition process being non eventful. There are no plans to relevantly increase operating costs or change the business in any way which would allow us to continuing controlling costs which is the starting point for the business model. Brisio understands this very well and there are no plans to increase operating costs.

We're excited to let our actions back up our words in the coming days, weeks, months and years, and thanks again for the reply.

Thank you for taking the time reply and respond, its admired.

Just the fact you come into this forum and reply is self evident in your customer service and care, it’s really great. I have watched all the threads this past year and always professional and responsive. You need a JD Powers like nomination for customer service!

 

[namesilo]

@namesilo Congrats and good luck. You're a good registrar and I hope this change will mean good things for domainers. If you're planning on positive changes... please make fixing the expired domain auctions a priority.

1. List expired domains at a point where owners can't renew the domains anymore or at least close to that point. Having to sometimes wait 30 days or so to know if a domain is renewed or not when the owner usually renews is maddening. 2. Stop forcing people to pre fund their account, then when the seller renews the expired domain and the sale becomes void, forcing the buyers to wait 60 days from the point of purchase till they can get the money back. I understand that you're afraid from charge backs but this practice isn't done by any other domain registrar and it's basically holding your clients' money hostage for 2 months on top of a failed sale.

Thanks and again- good luck.

Hi, and thanks for the note and feedback. 2 responses...

First, we probably will not be changing the timing on the expired domain auctions. We certainly understand the points you have raised. On the other hand, we can also report that our most negative customer interactions are with people who fail to renew their domains on time and then lose them to auction, or end up with higher prices in the restoration period. We believe our policies are fair, but we also need to take the experiences shared with us by customers into account. Part of this is to allow the longest grace period possible for renewal, which in turn means we need end auctions right before they enter the restoration period. Hope this makes sense, even though we do of course understand the frustration of bidding on domains only to see them renewed.

Second, we will very likely be getting rid of our 60-day rule regarding refunds of account funds for bids on expired domains that do not work out. I think this will be a thing of the past within the coming days.

 

[namesilo]

Thank you for taking the time reply and respond, its admired.

Just the fact you come into this forum and reply is self evident in your customer service and care, it’s really great. I have watched all the threads this past year and always professional and responsive. You need a JD Powers like nomination for customer service!

Thanks so much - we really appreciate it..... now if only JD Powers was listening!!

Thanks again

 

[SuperBrander]

Thanks for the quick response. Regarding getting rid of the 60 day rule- that's great and kudos.

Regarding the timing of the auctions- I have no problem with the fact that you give owners a long grace period, give them warnings etc. But you allow the bids on the domains way too early. On day one of expiration if I'm not mistaken. So you're making me as a buyer possibly wait a month or more than a month till I know the fate of a domain. My experience with your expired auctions up till now was that I bid max bid on a few expired domains and the owner always renewed. Always. Twice it was on the last day it was allowed or perhaps in the second instance it was a couple of days before that. So I waited more than a month twice only for a domain to be renewed in the last second. My money was stuck for 60 days (in one instance it was around $1500) so the whole experience was just terrible.

Godaddy's closeouts' model is much much better than what you currently have, especially after the recent changes they did. The domains are put up for grabs a few days before the last date the owner can renew. If it's regged at Godaddy- after the 30th day, they can't renew anymore. If it's at another registrar, a few more days are allowed. But it can never be a month or more like it is with you guys. So give owners warnings, by all means. But create a decent experience for expired auctions buyers.

Based on my past experiences with a 0% success rate in getting expired domains, having to wait a VERY long time to even know the situation and then having my money stuck for 60 days makes me think 10 times before I try to buy something at NameSilo. Changing the 60 day rule is a great start. But please think about improving the rest of the process so it could be competitive and deserving of your ambitions. After all- you did say that the marketplace was a main point of interest where you want to make improvements. So please make it at least as convenient as your competitors. On a side note, be aware that some of the more well known domainers in the industry don't like your current aftermarket process and avoid your services as a result. So I think you'd be wise if you address this issue as a part of the upcoming changes.

Thanks again & all the best.

 

[anantj]

Talking about auctions, any reason why you don't allow proxy bids for Expired domain auctions? Can you implement that? It has been one of the biggest sources of frustration as it also causes last minute sniping but the buyer does end up paying higher (of course, tat is good for you. I understand that part )

 

[Acha Kelvin]

Congrats to the @namesilo management...

I trust you won't be naive to lose thousands of your customers by allowing the change of ownership to diminish your services.

 

[karmaco]

Is anyone else having a problem calling up the marketplace? Mine is locked in a loading page and never loads.

Not really thrilled about this acquisition or possible negative impact. Many of my domains are at NS.

 

[anantj]

Dunno about the marketplace but the website is extremely slow today... Simple pages are taking over a minute to load

 

[Embrand]

Dunno about the marketplace but the website is extremely slow today... Simple pages are taking over a minute to load

Yes, I cannot even login. First time I have experienced that.

 

[karmaco]

The site is down now. Not a good look.

 

[BrandMart]

The site is down now. Not a good look.

Maybe the transfer / update is in progress. Hoping for the best out of this ownership change

 

[Kassey Lee]

Same here:

The page you are looking for is temporarily unavailable.