27th Jan 2014 09:14
LONDON (Alliance News) - Daily Internet PLC Monday said it had raised GBP625,000 in a subscription offer of nearly 37.9 million shares to help pay for the GBP150,000 cash acquisition of UK internet hosting provider NameHog, a deal it expects to boost earnings immediately.
NameHog provides domain name registration, shared web hosting and dedicated server products to a range of small- and medium-sized business customers. It made revenues of GBP179,624 in the year to April 30, 2012 and earnings before interest, tax, depreciation and amortisation of GBP25,060.
"NameHog will be relocated to Daily Internet's Nottingham office and NameHog's 5,000 plus customers integrated into the company's billing and provisioning platforms, with NameHog's operational costs significantly reduced as a result," Daily Internet said in a statement.
"Daily Internet expects cost rationalisations to be evident within three to six months of the acquisition and in addition will seek opportunities to cross-sell the Group's products into NameHog's customer base while retaining the NameHog brand," it added.
The subscription offer was taken up by existing institutional shareholders and other investors, it said.
Daily Internet shares were down 12.50% at 1.75 pence Monday morning. The subscription took place at 1.65 pence.
By Steve McGrath; [email protected]; @SteveMcGrath1
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