May 1, 2008 : Melbourne IT Buys VeriSign Assets

📅 May 1, 2008 - Australian web hosting provider Melbourne IT (melbourneit.com.au) announced on Wednesday that it has acquired Internet infrastructure services provider VeriSign's (verisign.com) global Digital Brand Management Services business for US$50 million.


According to reports by ARN (arnnet.com.au), the acquisition will significantly boost Melbourne IT's scale and market share in the digital brand protection and performance market. The acquisition is expected to quadruple the current enterprise client base to more than 2,500 customers.

Melbourne IT says the deal will see VeriSign DBMS and Melbourne IT's existing Corporate Brand Services division integrated into one digital brand services company and will target organizations with large e-commerce interests. The new division will be named Melbourne IT Digital Brand Services.

VeriSign's 120 staff members working under the DBMS business will join Melbourne IT's employee-base, with the hosting provider's management team assuming managerial responsibilities.

According to ARN, Melbourne IT's CEO and managing director, Theo Hnarakis, says the company had been looking to acquire VeriSign DBMS for the better part of three years.

"Six months ago we saw VeriSign's resolve weakening as it looked to get back to its core business, so in January we entered exclusive negotiations," says Hnarakis in an interview with ARN. "We will now have 2500 premium and enterprise customers and 14 offices throughout the world. Being able to offer around-the-clock support in all regions is going to be a significant advantage for us."

The VeriSign DBMS business is expected to contribute to Melbourne IT's earnings in 2009. The company says this year it will invest up to $5 million towards integration and migration and the establishment of data center facilities and support services.

Melbourne IT says the acquisition and integration could take up to 12 months in some areas, although most will occur within the next six months.

In March, Melbourne IT partnered with Cloudmark Authority to protect its email subscribers from messaging abuse.