UPDATED: Melbourne IT buys InfoReady for $15.4M

UPDATED: Melbourne IT buys InfoReady for $15.4M

InfoReady to complete Melbourne IT’s enterprise services strategy

Melbourne IT buys InfoReady for $15.4M

Melbourne IT buys InfoReady for $15.4M

Melbourne-based managed service provider, Melbourne IT (ASX:MLB), has acquired data and analytics provider for the enterprise and government market, InfoReady, for $15.4 million.

The InfoReady deal follows the acquisition of Outware Mobile in 2015 and the partnership with US-based 2nd Watch to deliver a range of datacentre migration services to the Cloud in A/NZ.

The company said, in a statement on the ASX, that the InfoReady data analytics capability will substantially complete Melbourne IT’s enterprise services strategy and enables it to become an end to end provider of digital solutions for the corporate and government market.

It will also sit alongside the company’s Cloud, mobile, security, managed services and Cloud application development capabilities.

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.

InfoReady director, Justin Parcell, will lead the data and analytics practice while the company’s managing director and founder, Tristan Sternson, will take on a senior leadership role in Melbourne IT’s enterprise services division.

Melbourne IT enterprise services executive general manager, Peter Wright, said the strategic acquisition enables Melbourne IT to deliver complete digital solution for corporate and government organisations.

Both companies already work together on a number of joint accounts and the partnership will be a natural step to provide more co-ordinated and extensive solutions for both existing and new customers.

“The strong data and analytics capabilities of InfoReady presents a compelling strategic fit with our enterprise strategy.

“It perfectly complements our Cloud, mobile, security and applications capabilities to deliver a comprehensive and compelling value proposition to the market. We are delighted to announce this acquisition, and making this significant data analytics capability available to our customers,” he said.

Wright told ARN no staff will be let go from either InfoReady or Melbourne IT as a result of this transaction and that InfoReady brings long-standing relationships with large corporate and government organisations.

Our SMB business has more than 500,000 small business customers, while our Enterprise Services business has hundreds of large enterprise and government customers. InfoReady services the same market as our enterprise services business.

“Founded in 2008, the company has 88 employees and offices in Brisbane, Sydney and Melbourne. Some of its major customers include Optus, NAB, Telstra, Origin Energy, IAG and Tennis Australia,” he said.

Sternson said the company is looking forward to combining its data and analytics capabilities with Melbourne IT to become a digital services provider.

“We have been looking for a partner to help us achieve our next phase of growth for some time and found Melbourne IT to be the perfect match for us. Our combined capabilities, shared values, and strong culture enable us to deliver high value, extensive digital solutions to our customers and manage change on an ongoing basis.

“By putting our analysis and insights together with Melbourne IT’s Cloud, mobile and security capabilities we can deliver a real competitive advantage to our combined customers,” he mentioned.

Melbourne IT has also announced that it will dispose of its International Domain Name Registration business for a sale consideration expected between $8.1 million and $8.5 million, and plans to raise $15 million of new equity via an underwritten institutional placement.

Melbourne IT managing director, Martin Mercer, said the transactions aim to accelerate the company’s transformation into a provider of digital solutions, and will also strengthen the Melbourne IT business, both operationally and financially.

“This package of transactions is earnings accretive and substantially completes our investment in acquiring capability for the Enterprise Solutions business. While the 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,” he added.

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