Melbourne IT buys Netregistry for $50m

Domain registrar Melbourne IT has entered into a Share Purchase Agreement to acquire Netregistry Group Limited in a deal worth $50.4 million.

The $50.4 million purchase price will take the form of cash and scrip.

Netregistry CEO and founder Larry Bloch will join the Melbourne IT board.

A statement from Netregistry said that all of its systems will "continue to be supported into the future" and that there will be no disruption to its customers.

The statement estimated the annual cost synergies between the two companies at more than $5 million by 2015 (before restructuring costs, transaction accounting adjustments and other non-recurring items).

Bloch said: "The merged entity will benefit from the leading products, management team and efficiencies of both companies. I look forward to joining the board of Melbourne IT and being involved as the businesses are integrated, evolve and grow their services."

Peter Findlay, acting CEO of Melbourne IT, said: “The proposed transaction will bring together two of Australia's leading web-services businesses, generating significant benefits for customers, employees and shareholders of both companies."

The completion of the transaction is subject to regulatory approvals.