Digital and interactive marketing communications company, BlueFreeway, to purchase destras Web Hosting Division
Australias largest independent digital media company, destra Corporation Limited, announced today that it is divesting of its Web Hosting division destra Hosting to newly formed entity BlueFreeway Limited for an expected $20 million subject to Blue Freeway listing on the ASX.
Digital and interactive marketing communications company, BlueFreeway, will acquire destra Hosting for a consideration expected to comprise $18 Million cash and approximately $2 million in BlueFreeway shares, pending a number of conditions precedent, including a successful public float and listing of Blue Freeway on the ASX this year or early next.
Destra CEO, Domenic Carosa said The capital generated from the sale of destra Hosting will be used to further strengthen destras balance sheet and used for acquisitions of profitable digital media businesses, which is in line with our stated corporate strategy. Chairman Carl Olsen added Given that destra will also be a shareholder in BlueFreeway, it is the intention that BlueFreeway and destra Corp will enter into a strategic alliance for co-marketing and reciprocal provision of hosting and communication services, as well as online media services.
Destra board member, Paul Choiselat will join the BlueFreeway board upon completion of the sale. BlueFreeway is a recently formed digital and interactive marketing communications company which intends to offer a full suite of products and services. The proposed acquisition of destra Hosting is the first in a series of planned acquisition announcements by BlueFreeway.
BlueFreeway was co-founded by Chief Executive Officer Richard Webb, who has had a successful career in leading media and technology businesses. Prior to forming BlueFreeway, Mr. Webb was the CEO of Citect (ASX: CTL) a global, Australian publicly listed industrial automation software company which was successfully sold to French publicly listed industrial conglomerate Schneider Electric earlier in the year. He was also President of Asia Pacific and Latin America of Nielsen//NetRatings (NASDAQ: NTRT), post the successful sale of the global web analytics and market intelligence company, Red Sheriff, which he lead for 5 years and successfully sold to Nielsen.
Mr. Webb said today that destra Hosting would be a strategic acquisition for BlueFreeway as it moves to consolidate a number of leading specialist interactive marketing agencies under the BlueFreeway brand.
The proposed acquisition of the destra Hosting business, with a customer base of around 13,000, provides BlueFreeway with the opportunity to cross-market and grow our technology platforms and digital and interactive marketing communication services, said Mr. Webb. Further announcements will be made about the sale becoming unconditional and the progress of Blue Freeways progress toward floating.
For further information re destra contact:
Antonia O'Neill
61 2 9270 0240 / 61 417 252 805
For further information re BlueFreeway contact:
Bryan Sinclair
61 406 770 715
About destra Corporation
destra Corporation Ltd is Australias leading independent digital media company. destra is the largest independent record company (CDs/DVDs) in the country and runs the most extensive independent online music network in Australia.
Destra controls significant digital and online media assets, including MP3.com.au, the largest online download network of independent and unsigned artists in the country. Destra also runs music communities, www.tranzfusion.com and www.thescene.com.au. When these assets combine with MP3.com, destra has the largest independent online music network in Australia.
Destra was also responsible for one of Australias first legal, digital music download service, destra Music. Destra music has distribution deals with SonyBMG, JB Hi Fi and Harvey Norman. Destras other media and music distribution assets include highly successful independent record label, Rajon, DVD distributor the Visual Entertainment Group and budget CD distribution chain, Payless Entertainment.
In September this year, destra branched out into the fast growing online advertising market, with the purchase of Brand New Media, an Australian market leader in online and traditional advertising media representation and a producer of brand-funded content and events. With this latest acquisition, destra is well placed to tap into the multi-billion dollar global online advertising market.
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