Melbourne IT to acquire Uber Global

Melbourne IT to acquire Uber Global

Records $7.9 million net profit in full year results

Melbourne IT CEO Martin Mercer.

Melbourne IT CEO Martin Mercer.

Melbourne IT is set to acquire Cloud services provider Uber Global for $15.5 million as it posts a net profit of $7.9 million in its 2014 full year results.

The company has entered into a share purchase agreement for the purchase of 100 per cent of the issued capital of Uber Global.

The deal will have an initial value of $15.5 million, with a potential earn out to follow based on EBITDA performance to June 30, 2015.

Melbourne IT chief executive, Martin Mercer, said the proposed transaction is consistent with the growth strategy approved by the board.

"Acquiring Uber Global significantly expand our customer based and deliver material synergy benefits of approximately $3.5 million per annum.

Melbourne IT chairman, Simon Jones, said the board sees the acquisition as a major opportunity to achieve additional scale and to strengthen the core domains and hosting business.

"It also aligns with the board's stated requirement that such acquisitions be earnings accretive from day one.

It will be funded from existing cash reserves.

In its full year results, the company recorded strong increases in revenue, up 21 per cent to $124.7 million and EBITDA, up 121 per cent $12.8 million.

Net profit after tax was up 27 per cent to $7.9 million.

The board has declared a final dividend of $0.04 per share (80 per cent franked).

Mercer said the results were supported by the full year impact of cost savings realised in late 2013 and the acquisition of Netregistry.

He said that total synergies of $7.5 million were anticipated from the integration of Melbourne IT and Netregistry.

Read more: Martin Mercer begins tenure as Melbourne IT MD

"We are confident in our ability to drive growth and profitability at Melbourne IT," he said.

"We commence 2015 with our new management team and a clearly articulated plan for future growth.

"We have a significant market opportunity, a clear strategy, an extensive customers base, a strong balance sheet, and a renewed focus on execution."

Follow Us

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags NetregistryMartin MercerUber GlobalSimon JonesMelbourne IT chairmanMelbourne IT chief executive


EDGE 2023

EDGE is the leading technology conference for business leaders in Australia and New Zealand, built on the foundations of collaboration, education and advancement.


ARN has celebrated gender diversity and recognised female excellence across the Australian tech channel since first launching WIICTA in 2012, acknowledging the achievements of a talented group of female front runners who have become influential figures across the local industry.

ARN Innovation Awards 2023

Innovation Awards is the market-leading awards program for celebrating ecosystem innovation and excellence across the technology sector in Australia.

Show Comments