Category Sponsorship Banner Left

Category Sponsorship Banner Right

Category Sponsorship Banner Middle

Friday, 16 October 2020 08:10

5G Networks outbids US firm to keep Webcentral in Australian hands

By
5G Networks managing director Joe Demase. 5G Networks managing director Joe Demase. Supplied

Publicly-listed data infrastructure and network services provider 5G Networks will become the new owner of the Webcentral Group, after outbidding the Florida-based Web.com which had made an offer of $12.2 million, and having its counter offer cleared to proceed.

As iTWire reported, Webcentral said in July that it had entered a scheme implementation deed providing for Web.com to acquire all its shares for A$0.10 per share in cash via a scheme of arrangement.

5G Networks indicated that it would launch a takeover bid for Webcentral back in September, soon after it announced a $30 million capital raising.

Webcentral includes the small and medium-sized business assets of the Arq Group; these include the brands Netregistry, WME, Melbourne IT and Domainz.

Arq Group was earlier known as Melbourne IT Group. One of the earliest domain name sellers in Australia, Melbourne IT was founded in 1996 and became the leading registry provider. It later went public and grew throughout the late 1990s and early 2000s. Other brands that were growing at the same time — Netregistry, Domainz and WME — later became part of Melbourne IT.

The company changed its name to Arq Group when it expanded through the acquisition of Infoready and Outware into enterprise cloud, mobile app, and data analytics. The sale of its enterprise business unit in June to Sydney-based private investment company Quadrant Private Equity on 26 June for $35 million led to a change in name to Webcentral Group.

On 7 September, 5G Networks launched its bid to take over Webcentral Group with a proposal that valued one 5G Networks share as worth 12 Webcentral shares. This meant an implied equity value of $21.6 million.

Web.com made a counter-off on 17 September, to increase the consideration payable to $0.18 per Webcentral share. But the same day, Webcentral said it had determined this would not provide an equivalent or superior outcome for Webcentral shareholders compared to what 5G Networks was offering and terminated talks with Web.com.

Under the offer, 5G Networks will acquire 34.75% of the Webcentral shares. The offer is due to close on 27 October.


Subscribe to ITWIRE UPDATE Newsletter here

GRAND OPENING OF THE ITWIRE SHOP

The much awaited iTWire Shop is now open to our readers.

Visit the iTWire Shop, a leading destination for stylish accessories, gear & gadgets, lifestyle products and everyday portable office essentials, drones, zoom lenses for smartphones, software and online training.

PLUS Big Brands include: Apple, Lenovo, LG, Samsung, Sennheiser and many more.

Products available for any country.

We hope you enjoy and find value in the much anticipated iTWire Shop.

ENTER THE SHOP NOW!

INTRODUCING ITWIRE TV

iTWire TV offers a unique value to the Tech Sector by providing a range of video interviews, news, views and reviews, and also provides the opportunity for vendors to promote your company and your marketing messages.

We work with you to develop the message and conduct the interview or product review in a safe and collaborative way. Unlike other Tech YouTube channels, we create a story around your message and post that on the homepage of ITWire, linking to your message.

In addition, your interview post message can be displayed in up to 7 different post displays on our the iTWire.com site to drive traffic and readers to your video content and downloads. This can be a significant Lead Generation opportunity for your business.

We also provide 3 videos in one recording/sitting if you require so that you have a series of videos to promote to your customers. Your sales team can add your emails to sales collateral and to the footer of their sales and marketing emails.

See the latest in Tech News, Views, Interviews, Reviews, Product Promos and Events. Plus funny videos from our readers and customers.

SEE WHAT'S ON ITWIRE TV NOW!

BACK TO HOME PAGE
Sam Varghese

Sam Varghese has been writing for iTWire since 2006, a year after the site came into existence. For nearly a decade thereafter, he wrote mostly about free and open source software, based on his own use of this genre of software. Since May 2016, he has been writing across many areas of technology. He has been a journalist for nearly 40 years in India (Indian Express and Deccan Herald), the UAE (Khaleej Times) and Australia (Daily Commercial News (now defunct) and The Age). His personal blog is titled Irregular Expression.

Share News tips for the iTWire Journalists? Your tip will be anonymous

WEBINARS ONLINE & ON-DEMAND

GUEST ARTICLES

VENDOR NEWS

Guest Opinion

Guest Interviews

Guest Reviews

Guest Research

Guest Research & Case Studies

Channel News

Comments