Rightside Group and Donuts, a domain name registry for new domain extensions, announced the two companies have entered into an agreement and plan of merger, pursuant to which Donuts will acquire Rightside for an aggregate purchase price of approximately $213 million.

The purchase price represents a premium of approximately 12% over Rightside’s average closing price for the 30-day trading period ended June 13, 2017 and a premium of approximately 22% over Rightside’s average enterprise value for such period.

Silicon Valley Bank is providing a credit facility to Donuts as part of this transaction. Perkins Coie is acting as Donuts’ legal advisor.

Barclays Capital is serving as financial advisor to Rightside. Wilson Sonsini Goodrich & Rosati is acting as Rightside’s legal advisor.

The merger agreement was unanimously approved by Rightside’s board of directors following a comprehensive review of strategic and financial alternatives that Rightside announced in Q1/17.

“We believe that this agreement offers a substantial cash premium to our shareholders,” said Taryn Naidu, Rightside, CEO of Rightside. “We look forward to working closely with Donuts to consummate this merger.”

“Donuts and Rightside have a long history of working together, and we are delighted to take the next step with this transaction,” said Bruce Jaffe, Donuts CEO. “We believe that the combined company will be well positioned to serve our registrar customers and the millions of businesses and individuals who are embracing new ways to brand their online identities.”