Dreamscape Networks Limited (ASX: DN8) has acquired Domain Name Registrar (DNR) for $8.5 million, its fourth acquisition in the past 16 months.
The acquisition is part of Dreamscape's "bolt on" strategy, as Dreamscape continues to consolidate local domain and hosting businesses under the Dreamscape Networks' umbrella.DNR's principal focus is domain registration and web hosting, with approximately 80 per cent of their business coming from domain registration and 20 per cent from hosting.
DNR will fit into the Dreamscape infrastructure in Sydney and is expected to be fully integrated by 30 September 2018.
The acquisition will be funded through Dreamscape's cash advance facility with Commonwealth Bank, and is expected to generate around $2.5 million of revenue and $1.5 million of earnings in the 2018 financial year.
Mark Evans, Dreamscape's managing director and CEO, says the acquisition will bolster Dreamscape's position in the Australian market.
"The acquisition of Domain Name Registrar allows us to further consolidate our .au domain position in the Australian market," says Evans.
"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."
In January 2018, Dreamscape acquired Quadra Hosting for a total of $2.5 million as part of its "bolt on" strategy.
Shares in Dreamscape are up 4.17 per cent to $0.12 per share at 11.50am AEST.
Business News Australia