Dreamscape Networks (ASX:DN8) has opened up its wallet again, spending $2.5 million to acquire the customers, systems and brand assets of Queensland-based web hosting business, Quadra Hosting.
This marks Dreamscape’s third acquisition in 10 months and adds to the Sydney-based infrastructure that came about from its previous Net Logistics and Enetica acquisitions.
Quadra is being acquired from the privately held Net Quadrant. The company also provides hosting in the United States from Texas.
About 95 per cent of Quadra’s business derives from web hosting, with the remainder coming from reselling domain registrations. In 2017, the business generated about $1.35 million in revenue and $800,000 EBITDA.
Dreamscape Networks managing director and CEO, Mark Evans, said the acquisition allows Dreamscape to take advantage of its existing infrastructure and synergies of its previous acquisitions, being Net Logistics and Enetica.
“We aim to bring increased value to current Quadra customers by utilising our recently-upgraded technology platforms, while improving customer service and marketing capabilities via our dedicated hosting brand, Voiden,” Evans said.
“With our laser focus on execution, we can increase our customer footprint in Australia and deliver an enhanced offering to Quadra customers, with the aim of growing returns for our shareholders," he said.
The acquisition will be funded through Dreamscape’s recently completed cash advance facility with the Commonwealth Bank, and is expected to close at the end of the month, with the business fully integrated by March.
The Perth-headquartered tech firm, which is the parent company of domain registrar, Crazy Domains, approved commercial terms and conditions for a $20 million three-year cash advance facility with the Commonwealth Bank in October.
“The additional funding available will enable us to continue building on our market leadership in Australia and Singapore, as we strive to become South East Asia’s leading trusted and affordable online solutions provider,” Evans said at the time.