The unit will operate under a new name, CSC Digital Brand Services, and offer services including domain name management, trademark searching, phishing protection, SSL certificates, DNS, and new gTLD solutions.
Melbourne IT has been looking to sell off some of its divisions after reporting a nine-month low in November. At the time, it was unclear which Melbourne IT services would be broken off, but it did seem unlikely that the Digital Brand Management unit would be sold as it was performing stronger than other services. Analysts were surprised by the price tag of the deal, and the fact that Melbourne IT sold its most profitable unit.
“They have got a sensational price for the business. When you look at the fact the price is almost the whole market cap of the company, then that says it all really,” BBY analyst Mark McDonnell told AFR.
Melbourne IT said its 10 percent decline in earnings stemmed from the postponement of ICANN’s new gTLD program. CSC Digital Brand Services said it would help companies secure more than one-third of all commercial or dot brand new gTLD applications.
“This acquisition significantly expands CSC’s global capabilities and will establish CSC Digital Brand Services as the partner of choice for companies worldwide seeking to promote and protect their brands online,” CSC vice president Jim Stoltzfus said in a statement. “Our combined new gTLD expertise makes CSC Digital Brand Services the ideal partner for brand owners looking to take advantage of this significant development in the digital marketplace.”
With the acquisition, CSC Digital Brand extends its footprint to six continents.
“We have always been impressed with CSC’s strong customer-first reputation and believe customers will benefit greatly from the combination of two of the leading providers of digital brand services,” Theo Hnarakis, CEO and managing director of Melbourne IT said in a statement.
Talk back: Do you think CSC paid too much for Melbourne IT’s online brand and domain services division? What do you think of the acquisition? Let us know in a comment.