Local company Dreamscape Networks has entered into an agreement to acquire Sydney-based Enetica Group for $4.4 million in cash.
Local company Dreamscape Networks has entered into an agreement to acquire Sydney-based Enetica Group for $4.4 million in cash.
ASX-listed Dreamscape said the target was a hosting and domain business operating as Web City, Enetica and Host1, and owned by private company Bucan Holdings.
Enetica Group has more than 15,000 customers and 70,000 registered domains, with the acquisition to expand Dreamscape’s hosting footprint in Australia including integration into the company’s Net Logistics infrastructure, operations and management division, which it acquired in March.
The cash acquisition price represents an earnings before interest, tax, depreciation and amortisation multiple of 3.1 times.
In order to fund the acquisition, Dreamscape has entered into a short-term, unsecured loan agreement with managing director Mark Evans, through his investment vehicle Cloudsafe Holdings, for $3 million.
“This is our third strategic acquisition since listing Dreamscape Networks in December 2016,” Mr Evans said.
“Having successfully integrated Net Logistics, the acquisition of Enetica Group is where the synergies of our growth strategy really start to come to life in Australia.
“Bolting Enetica Group into Dreamscape Networks allows us to harness the capability inherent in our previous two acquisitions, Net Logistics and Vodien.
“We will utilise the upgraded Net Logistics technology platforms, while improving customer service and marketing capabilities by harnessing the Vodien brand to bring increased value to current Web City customers.
“By leveraging these capabilities we can increase our customer footprint in Australia and deliver an enhanced offering to the customers of Web City and Enetica, with the aim of growing returns for our shareholders.
“It is a small but great opportunity to improve the product mix for all our Australian customers and provides Dreamscape Networks with increased scale to release additional add-on value products to further improve customer engagement, average bookings per user (ABPU), and the lifetime value of our customers.”
Dreamscape shares were 2.1 per cent higher to 23.5 cents each at 10:30am.
