Arq Group has sold its wholesale domain business TPP Wholesale to UK-based domain registry CentralNic Group for $24.4 million.
The sale comes as the former Melbourne IT looks to shed non-core businesses as it focuses on digital solutions.
The proceeds of the sale will be used to pay down debt and provide balance sheet flexibility.
“The divestment of TPP marks another significant step forward in the evolution of Arq Group, as we continue to sharpen our focus on achieving our vision of becoming Australia’s leading digital solutions partner powering the growth of businesses, big and small,” Arq Group chief executive Martin Mercer said.
“The sale will provide Arq Group with additional capital to reinvest into the growth of our digital services strategy.”
TPP Wholesale was part of Arq Group’s SMB division and its indirect business. The company was acquired as part of the $50.4 million Netregistry acquisition in 2014.
CentralNic will also absorb TPP Wholesale’s staff and customer base, and Arq Group will hold a two-year transition period upon the deal’s completion.
“Having run a competitive process we are very pleased that CentralNic is the successful acquirer of TPP. CentralNic supply domain names and hosting services to resellers globally, including all of the world’s top ten domain name retailers by volume,” Mercer said.
“CentralNic’s global expertise and leadership in the sector will greatly benefit TPP customers through future investment and commitment to the business.”