Melbourne IT looks to offload business units
Tough times for SME services
Battling disappointing trading results, Australian domain name custodian Melbourne IT is seeking buyers for some of its ailing business units.
The hosting house has also weathered a tough year on the security front, enduring a Privacy Commission investigation, following a hacking attack from Anonymous in August that targeted client AAPT and caused the loss of customer data.
In a statement to the ASX, Melbourne IT said that following a strategic review, the company would seek "ownership alternatives for its current portfolio of businesses."
Melbourne IT has appointed Lazard & King and Wood Mallesons as financial and legal advisers to conduct a formal strategic review to divest some of those struggling business units.
The company confirmed that it was looking at different ownership alternatives in relation to the lesser performing units with potential buyers being primarily large offshore organisations, who had previously indicated interest in potentially acquiring one or more divisions of Melbourne IT.
Melbourne IT revealed that aggressive competitor activity has adversely affected its SMB eBusiness Solutions segment while its government services division ForTheRecord (FTR) has been squeezed by pauses in US Federal and State Government spending.
The Digital Brand Services (DBS) division had to push back growth expectations due to delays in the rollout of ICANN’s new gTLD program. ®