Register.com – the domain name registration and Internet services outfit – is set to buy the UK domain registrar, Virtual Internet plc, in a cash deal worth £12 million.

The bid has the full backing of Virtual's board of directors but still needs shareholder approval.

The offer of 46.8p a share represents a premium of around 36 per cent on Virtual's closing price yesterday. By mid morning shares in Virtual were up 10p (29 per cent) at 44.5p.

If the deal goes ahead it would give Register.com a platform for growth in the UK and Europe, particularly in the corporate domain name services market, the company said.

Separately, Virtual Internet also announced today its preliminary results for the year ended 31 October 2001.

Turnover for the year topped £9.3 million – up from £6.3 million the year before.

Pre-tax losses increased from £8 million in 2000 to £19.7 million last year. ®