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Dreamscape to acquire Hong Kong-based PacHosting
- 02 October, 2018 11:42
Dreamscape Networks will acquire 100 per cent of Hong Kong-based PacHosting after entering into a binding ‘heads of agreement’.
The company is expected to acquire hosting and domain business PacHosting from Pacificnet Hosting Limited for US$3 million, subject to finalising customary condition precedent.
"This is a strategic and exciting extension of our reach into Asia for the Vodien brand,” said Mark Evans, managing director and CEO of Dreamscape. “While the business is Hong Kong and China facing, we will be operating it from our Singapore facility with English and Chinese dialect support.
"Hong Kong is small in size but large in commercial reach and we are very pleased to have been able to secure a beachhead here.
"We have built a very robust infrastructure in Singapore to cater for future growth and I am delighted that PacHosting has chosen to entrust us with their loyal customers."
Most of PacHosting’s business comes from website and email hosting for small and medium businesses and domain registration; 96 per cent of bookings come from hosting.
The total sum of the acquisition cost is expected to be paid in full by 30 September 2019 with US$200,000 paid as a deposit and US$1.5 million payable on completion with the remaining paid in instalments.
The acquisition is consistent with the provider's strategy to acquire earnings accretive, low-risk assets that will integrate with the Vodien hosting brand and will be funded by internally generated cash flow and available debt facilities.
This acquisition will provide Dreamscape’s with an additional marketing opportunity for its Vodien brand in an English speaking Asia territory, which is consistent with its initial IPO strategy.
Furthermore, PacHosting has a customer base that is consistent with Dreamscape’s small and medium business hosting profile.
Dreamscape is expected to complete move of its corporate headquarters to Singapore by the end of 2018.