Host Byte Marketplace -- 22 May, 2006 -- Melbourne IT and WebCentral Group today announced that they have entered into a conditional agreement for Melbourne IT to acquire WebCentral Group via a Scheme of Arrangement to be voted on by WebCentral Group Shareholders at a Scheme Meeting, likely to be held in late 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," said Theo Hnarakis, CEO and Managing Director of Melbourne IT.
"The post merger group will bring together Melbourne IT's domain name and brand protection experience with WebCentral Group's hosting and business solution expertise to provide our channel partners and customers with a range of services to optimise their online success," said Mr 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 said "with combined annual sales of over $130 million (as at 2005) and approximately 400 staff worldwide, the increased scale of the business will help facilitate an acceleration of innovation and investment in future growth."
"Furthermore, we will be able to deliver efficiencies in service delivery to enhance the success of our customer base," said Mr Hnarakis. "Shareholders will benefit from the synergies in bringing two industry leaders together, while staff will have opportunities for career advancement with a recognised Employer of Choice
"In regard to the ForTheRecord (FTR) division, Melbourne IT's substantial experience in managing international businesses will complement FTR as it pursues continued growth." Mr Hnarakis said. Lucy Turnbull, WebCentral Group's Chair, said that Melbourne IT's proposal represents a very attractive offer.
"The Board of WebCentral Group is excited about the prospects for the new merged business. This transaction will create a much larger company with greater scale and breadth of operations which will benefit both shareholders and customers. There are expected to be significant merger synergies."
"The new enterprise will be a leading publicly listed and substantially Australian owned online technology services company with a strong presence both nationally and internationally, she said. "This transaction offers a great opportunity for WebCentral shareholders to participate in the value which is expected to arise from increased scale and profitability. WebCentral shareholders will also have the flexibility to choose the consideration alternative that best suits their investment preferences - either 63 or 93 cents cash per share, with the balance in Melbourne IT shares." After the transaction, WebCentral Group's shareholders will own shares in a company with a much wider shareholder base and greater market liquidity.
WebCentral Group's Directors unanimously support the Melbourne IT proposal as being in the best interests of WebCentral Group shareholders.
About Melbourne IT
Melbourne IT (ASX:MLB) is a world leader in the supply of domain name registration and other online solutions with a strong commitment to the delivery of high value internet services and webbased solutions to organisations of all sizes across the globe. Melbourne IT was listed on the Australian Stock Exchange in 1999 and has a network of offices in locations across the world.
About WebCentral Group
WebCentral Group (ASX:WCG) is a successful Australian technology company with two principal operating divisions. WebCentral Pty Ltd is Australia's largest web and application hosting company and a leading supplier of Internet solutions for business, including software as a service (SaaS) solutions such as premium email, electronic commerce, database and email marketing solutions.
