Registrar buys registrar with big presence in Australia.
Web.com bought the company that owns CrazyDomains
Web.com is bolstering its business Down Under.
The domain registrar and hosting company is buying Dreamscape Networks Limited (ASX: DN8) for AUS $105.2 million, or about USD $73 million. The company employs 600 people.
Dreamscape is known for its flagship registrar CrazyDomains, which focuses on the Australian market. It also owns Singapore’s Vodien, which it bought for USD $23 million in 2017.
The company had total 2018 fiscal year revenue of $61.6 million and a net profit after tax of $2.7 million. It reported an adjusted EBITDA of $10.3 million. For the second half of calendar year 2018, the company had revenue of $35.5 million.
Its revenue is split fairly evenly between domain names and hosting services.
The acquisition price is at a 32% premium to the closing price of Dreamscape shares on July 19.
The companies hope to close the transaction by October.
$62 million in revenue and only $2.7 million in profit. That’s bad.
Depends on how you count the profit. I’m not sure what goes into their adjusted profit number is reasonable.