December 10, 2007 — (WEB HOST INDUSTRY REVIEW) — Australian Web hosting provider Hostworks (hostworks.com.au) announced on Monday that it has entered an acquisition agreement with Broadcast Australia (broadcastaustralia.com.au) where the latter company will take over all of Hostworks’ shares through a scheme of arrangement for $0.41 Australian cash per share. This price represents a 37 percent premium on the previous closing price and a 17 percent premium on the media broker valuation.
The scheme of arrangement is subject to the approval of Hostworks shareholders at a meeting to be held in February 2008. However, the proposed acquisition has the unanimous recommendation of the independent directors of Hostworks who believe it is in the best interests of the company to vote in favor of the offer.
“In the eight years since foundation, Hostworks has become recognized as Australia’s leading provider of managed services for online media and entertainment companies and management and hosting services for a broad range of critical applications,” says Marty Gauvin, managing director of Hostworks. “Broadcast Australia’s proposal represents an excellent outcome for our shareholders as well as providing significant benefits for customers and employees.”
Broadcast Australia is an independent broadcast transmission service provider and is a wholly owned subsidiary of ASX listed Macquarie Communications Infrastructure Group.
Partner4real recently selected Hostworks to meet customer demand on its website, which has exceeded 12,000 visitors a day within weeks of going live.
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