Managed hosting services supplier Daily Internet has made another earnings enhancing acquisition.
Domain name and hosting services provider Evohosting generated revenues of £419,000 and underlying EBITDA of £156,000 in the year to May 2013. There is no indication of current trading.
Daily Internet is paying £395,000 for the Maidenhead-based business and raising £435,000 at 2p a share to finance this. The business has a customer base which can be cross-sold other group products and services and costs can be reduced. Integration will take three months.
The placing is at a premium to the market price, which fell 0.03p to 1.85p, which values the enlarged share capital at £8.31m.
In the year to March 2015, Daily Internet is expected to move into profit. The acquisition will make a full contribution in the following year when profit is forecast at £700,000 and the shares are trading on around 14 times prospective 2015-16 earnings. .
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