Crazy Domains parent buys Gold Coast company for $2.5m
Written on the 17 January 2018 by David Simmons
THE parent company of Crazy Domains, Dreamscape Networks Limited (ASX: DN8) has acquired a Gold Coast company for $2.5 million.
Dreamscape announced to the ASX this morning that it has entered a binding agreement to acquire the customers, systems, and brand assets of Quadra Hosting for a total of $2.5 million.
Based on the Gold Coast, Quadra Hosting's principal focus is on web hosting, with approximately 95 per cent of its business coming from hosting and 5 per cent from re-selling domain registrations.
Quadra Hosting marks the third local Australian acquisition by Dreamscape in the last 10 months.
The acquisition is part of Dreamscape's efforts to consolidate local hosting businesses in Australia under the Dreamscape umbrella.
Dreamscape Networks' managing director and CEO, Mark Evans, says the acquisition will allow Dreamscape to take full advantage of the infrastructure in Sydney.
"Bolting Quadra Hosting into Dreamscape Networks allows us to take further advantages of our existing infrastructure, and the synergies of our previous Australian acquisitions, Enetica Group and Net Logistics," says Evans.
"With laser focus on execution we can immediately increase our customer footprint in Australia, and deliver an enhanced offering to the customers of Quadra Hosting, with the aim of growing returns for our shareholders."
Quadra will be integrated into the Dreamscape infrastructure in Sydney by 31 March 2018.
According to Dreamscape's release to the ASX, Quadra Hosting generated around $1.35 million of revenue and $0.8 millions of earnings in the 2017 financial year.
2017 marked the first full year result for Dreamscape, which only recently listed on the ASX.
The company's maiden result was positive across all key metrics, which was certainly exciting for Evans and Crazy Domains COO Gavin Gibson who transformed Dreamscape from a domain name registration provider to a complete online solutions business.
Business News Australia
Author: David Simmons