Melbourne IT is selling its international domain name registration business to Nasdaq-listed Tucows Inc in a deal worth between $A8.1 million and $A8.5 million.
Tucow, a Canada-based global provider of network access, domain names and internet services, will get about 1.6 million domains under management.
“This acquisition represents an excellent opportunity to acquire a loyal, profitable base of resellers that have the same core needs as our existing wholesale customers,” said Tucow executive vice-president of domains David Woroch.
The deal comes as Melbourne IT announced plans to buy data analytics company InfoReady for $15.4 million as the business pushes to expand its digital solutions range for the corporate and government markets.
Melbourne IT also plans to raise $15 million of new equity via an underwritten institutional placement.
InfoReady designs and implements insight platforms that combine, manage and analyse data for businesses ranging from Optus to NAB, Telstra, Origin Energy, IAG and Tennis Australia. The company has 88 employees and offices in Brisbane, Sydney and Melbourne.
Melbourne IT managing director Martin Mercer said his business already works with InfoReady on a number of joint accounts.
InfoReady will retain its branding as part of the Melbourne IT Group, while also operating as the data and analytics practice within Melbourne IT Enterprise Services business.
Mercer added that that sale of the international reseller business “removes a significant drag on SMB growth and allows us to focus on its digital solutions strategy in Australia”.
InfoReady director Justin Parcell will lead the Data and Analytics practice while MD andd founder Tristan Sternson will take on a senior leadership role in Melbourne IT’s Enterprise Services division.
The InfoReady deal follows the acquisition of Outware Mobile in 2015 and the partnership with US based 2nd Watch to deliver a range of data centre migration services to the cloud in Australia and New Zealand.