Melbourne IT to acquire WebCentral Group

Domain name registration company Melbourne IT Ltd has entered into a conditional agreement to acquire hosting group WebCentral.

The agreement will take place via a Scheme of Arrangement voted on by WebCentral Group Shareholders at a Scheme Meeting to be held in August 2006.

“The proposed acquisition will bring together two of Australia’s leading web-services businesses, generating significant benefits for customers, shareholders and staff of both companies,” says Theo Hnarakis, CEO and Managing Director of Melbourne IT.

The post merger group claims to bring together Melbourne IT's domain name and brand protection experience with WebCentral Group’s hosting and business solution expertise to provide their channel partners and customers with a range of services. Says Hnarakis, “All WebCentral customers can be assured that they will continue to receive the high levels of service to which they are accustomed.”

He also added that this AU$61.26 million acquisition will help them to set efficiencies in service delivery to enhance the success of their customer base. Hnarakis told shareholders at today’s annual general meeting in Melbourne that the company expected operating profits for the first six months of the year to be more than AU$3.2 million.

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