Netregistry and Melbourne IT are now a single company, with Melbourne IT announcing to the ASX this afternoon that its purchase of its largest local rival is complete.
The total value of the deal is AU$50.4 million, with AU$38.3 million paid in cash, and AU$12.1 million due in shares. Former Netregistry shareholders received over 9 million shares giving them a 9.99 percent stake in the new entity. As part of the transaction, Larry Bloch, founder and CEO of Netregistry, will join Melbourne IT's board.
"The completion of this transaction creates a company with greater scale, improved product offerings, and a breadth of operations which will benefit both shareholders and customers as a result of significant merger synergies," said Peter Findlay, acting CEO of Melbourne IT.
Findlay will remain in an acting role until Martin Mercer, former managing director of Optus' fixed division, takes up the role of CEO and managing director from April.
Netregistry had annual revenue in excess of AU$30 million, and is expected to contribute at least AU$6 million of EBITDA to Melbourne IT's bottom line.
The merged group is expected to save AU$5 million through consolidation of platforms, products, Sydney offices, and infrastructure.
Melbourne IT announced its purchase last month alongside its financial results, which saw the company post a revenue decrease of 5 percent to AU$103.4 million, with EBITDA falling by 43 percent to AU$5.8 million.