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Register.com snaps up Afternic.com

Internet domain name registrar Register.com, Inc. (Nasdaq: RCOM) said Friday it will buy Afternic.com, a provider of domain name resale services for 4.38 million shares of common stock and $10 million in cash.

Shares in the company rose 0.19 to 9; the company beat estimates in its second quarter.

The transaction will be accounted for as a purchase and is expected to close today. Upon the close of the transaction, Afternic.com will become a wholly-owned subsidiary of register.com. All Afternic.com employees will be offered positions with this subsidiary. A portion of the 4.38 million shares and the $10 million cash being paid is to satisfy existing Afternic.com obligations.

The deal will enable register.com to realize new business opportunities within the domain name resale market, the company said. Register.com currently provides individuals, businesses and ISPs with a suite of domain name services, including registration, renewal, management and Web site development. Afternic.com provides domain resale services including, auctions and appraisals.