US-based domain name and hosting provider Web.com has agreed to acquire Australian hosting provider Dreamscape Networks for $105 million.
ASX-listed Dreamscape said in its announcement that it entered a scheme implementation deed with Web.com, with the deal being subject to a shareholder vote.
The $105 million price tag represents 27 cents per Dreamscape share, a 32 percent premium on today’s stock price of 20.5 cents, or an 88 percent premium over the 90-day average price of 14.4 cents.
Dreamscape's board “unanimously recommends” shareholders vote in favour of the acquisition, in the absence of a superior acquisition.
“Dreamscape shares Web.com’s commitment to serving customers with a comprehensive online presence product portfolio and the highest level of customer service,” Dreamscape Networks managing director Mark Evans said.
“With this acquisition, we now have the support and backing of an international strategic partner that will allow us to continue our leadership status in Australia and Singapore and accelerate our growth strategy into Southeast Asia, the fastest growing internet space in the world.”
As part of the deal, Dreamscape will bring its 600 employees under Web.com’s fold, as well as its Crazy Domains brand in Australia and Vodien brand in Singapore.
Web.com, wholly owned by US private equity firm Siris Capital, offers domain name registration and web development services. The company dates back to 1997 as Website Pros, before rebranding as Web.com in 2008.
“Web.com looks forward to welcoming Dreamscape Networks to its family of leading brands that focus on helping businesses build an online presence that delivers results,” Web.com chief executive Sharon Rowlands said.
“Dreamscape provides a highly complementary set of offerings and, as a market leader, extends the Web.com global footprint across Australia, New Zealand and the high growth digital economies of Southeast Asia.”