King & Wood Mallesons has advised Melbourne IT on the sale of its Digital Brand Services (DBS) division to US-based Corporation Services Company for A$152.5 million.
The sale price represents a significant growth in the value of the DBS business since it was created in 2008. Realising the intrinsic value of the division, Melbourne IT board made the strategic decision to divest in order to unlock shareholder value. After retiring outstanding debts, Melbourne IT will consider a range of capital management opportunities as a result of the sale.
The King & Wood Mallesons team was led by Partners Craig Semple and Nicola Charlston.
“It was very satisfying to have been able to support our long-standing client on this significant transaction for them. It is particularly pleasing given that we acted for Melbourne IT when it bought from VeriSign just 5 years ago for US$50m the business which it combined with its existing operations to form the division it has now sold”, said Semple.
As Australia’s first domain name registration company, Melbourne IT is a world leader in domain registration, website design, email and web hosting.
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