Dreamscape Networks Limited is to acquire Enetica Group, consisting of the brands Webcity, Enetica and Host1, for $4.457 million.
A Sydney-based hosting and domain business, in 2002 Enetica became the first new fully accredited registrar following open tendering of the .au domain market, and currently has approximately a 1.6% .au market share.
third strategic acquisition
Commenting on the acquisition, Dreamscape Networks’ Managing Director & CEO Mark Evans said:
“This is our third strategic acquisition since listing Dreamscape Networks on the ASX in December 2016. Having successfully integrated Net Logistics, the acquisition of Enetica Group is where the synergies of our growth strategy 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 use the upgraded Net Logistics technology platforms, while improving customer service and marketing capabilities by harnessing the Vodien brand to bring increased value to current Webcity customers.
“By leveraging these capabilities we can increase our customer footprint in Australia and deliver an enhanced offering to customers, 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.”
ENETICA ACQUISITION AddS scale to Dreamscape ’s platform, with strong hosting focus
Enetica Group has more than 15,000 customers and 70,000 registered domains. Hosting accounts for approximately 76% of revenue, with domains accounting for the remaining 24%.
Dreamscape Networks expects to complete the acquisition on or shortly after 31 October 2017.
Cash Advance Approved
Earlier this month, Dreamscape approved commercial terms and conditions for a $20 million three-year cash advance facility. The funding will assist Dreamscape Networks in making further acquisitions.