Broadcast Australia buys Hostworks for $68.9 million

Managed service provider Hostworks Group Limited has entered into an agreement to allow Broadcast Australia to acquire all of its shares, for the princely sum of $68.9 million dollars.

In a statement provided to the ASX, the Scheme of Arrangement is based on Broadcast paying $0.41 per share. The buyout is subject to shareholder approval by Broadcast Australia and its parent company, Macquarie Communications Infrastructure Group (MCG).

In the eight years since its beginnings, Hostworks has become a recognised local provider of managed services for on-line media and entertainment companies as well as for management and hosting of a broad range of critical applications. Its customers include ABC, SBS, News, NineMSN, Wotif and Ticketek.

Graeme Barclay, managing director at Broadcast Australia said Hostworks complemented the company and allowed Broadcast to expand its range of customer services.

“This acquisition expands our service offering. It also allows us to meet the demands of new and existing customers – some of whom are shared with Hostworks,” he said.

According to Barclay, Hostworks will also be able to access international contacts available through Broadcast Australia and MCG.

Shareholders will be able to vote on the acquisition at a meeting, to be held in February 2008.