Melbourne IT intends to sell off its international domain name business for more than $8 million, the hosting and domain firm announced today, while revealing a $15.4 million acquisition of data consultancy firm Infoready.
Infoready will continue to operate under its own name as the data and analytics arm of Melbourne IT, with the deal expected to be completed by 31 March.
Melbourne IT will fund the acquisition by selling off its international domain name business, which is expected to bring in $8.1 million to $8.5 million. The difference will be met by additional equity raising.
The domain name business offers large volumes of domain names at low margins. Melbourne IT said the division is increasingly becoming a non-core operation as the company focuses on growing its new managed solutions business.
Infoready director Justin Parcell will head up the new data and analytics business, while managing director Tristan Sternson will take a senior leadership role in Melbourne IT’s enterprise services division.
Founded in 2008, Infoready designs and implements data analytics platforms for enterprise customers such as Optus, NAB, Telstra, Origin Energy, IAG and Tennis Australia.
The company has grown to 88 staff across offices in Brisbane, Sydney and Melbourne.
Infoready marks Melbourne IT’s third major acquisition in the past 12 months, on top of Uber Global for $15 million and Outware Mobile for $21.7 million. Infoready expects to bring in approximately $3.4 million of EBITDA for the 2016 calendar year.
Melbourne IT executive general manager Peter Wright said the acquisition allows his ASX-listed company to expand further into solutions for corporate and government organisations.
“The strong data and analytics capabilities of InfoReady presents a compelling strategic fit with our enterprise strategy,” he said.
“It perfectly complements our cloud, mobile, security and applications capabilities to deliver a comprehensive and compelling value proposition to the market. We are delighted to announce this acquisition, and making this significant data analytics capability available to our customers.”
Melbourne IT's shares were trading at $2 each before the acquisition was announced.