MELBOURNE, Australia – 27 February 2014 – Melbourne IT (ASX: MLB) announced today that it had entered into a Share Purchase Agreement to acquire Netregistry Group Limited for an enterprise value of $50.4 million.
“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,” said Peter Findlay, acting CEO of Melbourne IT.
Larry Bloch, Founder and CEO of Netregistry Group commented “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 efficiencies 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”.
All our systems will continue to be supported into the future and there will be no disruption to Netregistry Group customers.
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 million1
- Annual cost synergies estimated at over $5 million by 20152
- 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
1 Unaudited – sourced from Netregistry management.
2 Before any restructuring costs, transaction accounting adjustments and other non-recurring items.