27th Jan 2014 13:30
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 Ltd, 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.
Daily Internet is exploring other similar acquisition opportunities, newly appointed Non-Executive Director Chris Evans told Alliance News, as it can be cheaper to acquire a company and bring in its customer base than marketing to reach new customers.
Evans joined Daily Internet on January 15, and Daily Internet said that Evans would be active in driving forward its acquisition and integration programmes.
NameHog only has one full time employee, Evans said, who will be based in Daily's office for the handover period before departing.
Daily Internet is also today launching its domain name pre-registration service, Evans said. A proliferation of new top-level domain names will be launching soon, authorised by the Internet Corporation for Assigned Names and Numbers, and although Daily Internet will not be operating any of these top level domains, it will be taking part in registering new domain names for its customers.
The subscription offer was taken up by existing institutional shareholders and other investors, it said. Evans subscribed for 344,290 shares in the placing, bringing his total interest in the company to 1.94%
Daily Internet shares were down 12.50% at 1.75 pence Monday afternoon. The subscription was priced at 1.65p.
By Steve McGrath; [email protected]; @SteveMcGrath1
Additional reporting by Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
DAIP.L