Registrar buys registrar with big presence in Australia.
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.