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Melbourne IT strikes deal with Netregistry Group

Tue, 4th March 2014, 20:27

In churnator news, Melbourne IT has announced a Share Purchase Agreement to acquire Netregistry Group Limited for an enterprise value of $50.4 million.

Peter Findlay, acting CEO of Melbourne IT says;

The proposed transaction will bring together two of Australia’s leading web-services businesses, generating significant benefits for customers, employees and shareholders of both companies.

Larry Bloch, Founder and CEO of Netregistry Group adds:

This transaction validates the tremendous success the Netregistry team have had since 1997 in building a leading web services business. The merged entity will benefit from the leading products, management team and efficiency of both companies. I look forward to joining the board of Melbourne IT and being involved as the businesses are integrated, evolve and grow their services.

The press release points out that all Netregistry systems will continue to be supported into the future and there will be no disruption to Netregistry Group customers.

Other Key Points

  • Melbourne IT to acquire leading online services provider Netregistry Group for an enterprise value of $50.4 million in cash and scrip
  • Netregistry Group calendar 2013 normalised EBITDA was approximately $6 million
  • Annual cost synergies estimated at over $5 million by 2015
  • Larry Bloch, Founder & CEO of Netregistry Group to join the Melbourne IT Board
  • Netregistry’s high quality SMB-focused management team to join Melbourne IT
  • Transaction completion subject to regulatory approvals
Last year, Melbourne IT sold its corporate domain name and online brand services business division for $157.3 million. By acquiring Netregistry, Melbourne IT hopes to be better positioned to serve the small and medium business market.

 

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