Dreamscape makes $8m acquisition

19/06/2018 - 11:53

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ASX-listed tech company Dreamscape Networks has made its fourth acquisition in the past 16 months, purchasing a domain registration business for $8.5 million.

Dreamscape makes $8m acquisition
Dreamscape provides internet hosting and domain name registration services.

ASX-listed tech company Dreamscape Networks has made its fourth acquisition in the past 16 months, purchasing a domain registration business for $8.5 million.

Dreamscape, which provides internet hosting and domain name registration services, announced today that it had entered into a binding agreement to buy Melbourne-based Domain Name Registrar (DNR).

The business is expected to generate about $2.5 million of revenue and $1.5 million earnings before interest, taxes, depreciation and amortisation in the 2018 financial year.

Dreamscape said the acquisition multiple was expected to equate to around 4.6 times 2019 Ebitda, which included cost savings from integration.

The purchase follows a $2.5 million acquisition of a web hosting company in January by Dreamscape, after it bought Sydney-based Enetica Group and Net Logistics in 2017.

“The acquisition of Domain Name Registrar allows us to further consolidate our .au domain position in the Australian market,” managing director Mark Evans said.

“It will also allow us to take further advantage of our existing infrastructure and the synergies of our previous Australian acquisitions.

DNR is a very established domain registrar and is highly respected in the industry, having been one of the first registrars.

“Our integrations team is preparing for a full integration of the business into our Dreamscape infrastructure within 90 days of acquisition.

“We are looking forward to welcoming the DNR customer base to Dreamscape and utilising our upgraded technology platforms to enhance customer experience and product diversity for these customers.”

DBR is expected to be fully integrated by the end of September.

Shares in Dreamscape were up 4.17 per cent at 12 cents each at 12pm AEDT.

 

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