Ethos Capital announced Thursday it has completed an investment to acquire a controlling interest of Donuts Inc. from Abry Partners. Based in Seattle, Washington, Donuts holds the world’s largest portfolio of top-level domains with 260 new gTLDs as well as providing registry services for a number of other top-level domains (both gTLDs and ccTLDs) through both its Donuts and Afilias brands.
In a statement announcing the completion of the acquisition, Ethos Capital notes their co-CEOs, Erik Brooks and Fadi Chehadé, have deep experience in the digital infrastructure sector and have owned and worked with companies in the domain industry for years. Ethos Capital’s initial investment in Donuts in 2020 facilitated the acquisition of Afilias, Inc. a leading TLD registry operator and provider. The Ethos Capital investment group, which includes strategic partner The Baupost Group, funds managed by Neuberger Berman and others, now controls the Donuts Board of Directors and will provide a strong shareholder base to support the company’s future growth.
“With extensive operational expertise and significant experience in domain name and related industries, Ethos Capital is the perfect partner to support our mission of reliability, security, and stability, as well as position us for continued success. We look forward to working with the Ethos Capital team and leveraging their expertise as we enter this next phase of growth,” said Akram Atallah, CEO of Donuts.
“Akram and the rest of the Donuts team have built an industry-leading domain company and demonstrated consistent organic growth through multiple market cycles. We are thrilled to partner with the team and look forward to applying our unique value proposition to their existing platforms,” Brooks said.
Chehadé added, “We appreciate that Donuts helps businesses establish and promote their digital identities, while also maintaining data security. Through our focus on operational excellence and responsible strategies, Ethos Capital will support Donuts as it continues to serve its customers’ business needs.”
Ethos Capital was founded on the principle that operating expertise is mission critical to making sound investment decisions and adding value to portfolio companies. Ethos Capital’s Executive Partners bring disciplined investment and management experience to the businesses with whom they partner.