Melbourne IT to Acquire WME Group for $39 Million

0

AUSTRALIA – Melbourne IT (ASX:MLB) is acquiring WME Group, a provider of end-to-end digital marketing solutions, for approximately $39 million, the company said in a disclosure to the Australian Securities Exchange (ASX).

The acquisition will allow Melbourne IT to deliver a compelling customer value proposition and is expected to deliver significant benefits through scale and scope.

“The proposed acquisition further strengthens our managed marketing capabilities and positions the company as market leader in online marketing solutions for small and medium sized businesses, one of the fastest-growing segments of the technology industry,” the company said in a disclosure.

READ ALSO: Australia’s Myer To Shut Down Stores in Sydney and Melbourne

WME Group provides search engine optimization, search engine advertising, and web design. Its market-facing brands include WME, Nothing But Web, and Results First.

“This acquisition will build on the success we have experienced to date in providing managed marketing solutions for small businesses,” said Melbourne IT CEO Martin Mercer.

Series of Successful Acqusitions

The proposed acquisition follows previous successful acquisitions in Melbourne IT’s Enterprise Services division, mainly the acquisition of Outware Systems, which completed in February 2017 for $57.84 million.

Emma Hunt, Managing Director of the SMB division, said the acquisition clearly aligns with Melbourne IT’s strategy of transitioning the SMB organization into the leading digital solutions partner for small and medium businesses.

The proposed acquisition will be party funded by a $30.7 million fully underwritten 1 for 7 accelerated non-renounceable rights issue. The entitlement offer will consist of an accelerated institutional component and a retail component, which will open on 8 May 2017 and close on 18 May.

READ ALSO: Melbourne’s World Trade Center, General Gordon Hotel Sold

Melbourne IT Group is a publicly listed company with offices in Melbourne, Sydney, and Brisbane. The SMB of Melbourne IT provides Australian small and medium businesses with online marketing solutions. It has over 450,000 direct customers and provides services to over 700,000 Australian businesses. – BusinessNewsAsia.com

LEAVE A REPLY