Accounting and small business software developer MYOB (Mind Your Own Business) has bought Australia’s second biggest Web hosting business, SmartyHost, for A$7 million.
It’s the second move into the hosting and Internet services arena by the ASX-listed MYOB this year, following its February acquisition of Perth-based Ilisys, and comes as the software company yesterday reported a 27 percent
rise in operating profit but an overall loss, following sale of unprofitable European operations for the half-year to June.
Said MYOB CEO Tim Reed: “Our research shows that 59 percent of Australian mall businesses don’t currently have a Web site. Increasingly a Web site is as essential to a business as are business cards and signs. Through the acquisition of SmartyHost we can now deliver a basic Web site and domain name package to Australian businesses, starting from under $100 per year.”
He said MYOB also planned to help business owners leverage the Net to “rewire their customer and supplier interactions and other core business processes.”
SmartyHost, founded by MD Anoosh Manzoori in 1999, claims to have more than 50,000 Australian customers, and to generate more than $3 million a year in revenue. MYOB has purchased the shares and existing debt not enumerated of SmartyHost for $7 million.
Separately yesterday, MYOB reported a 6 percent rise in operating revenue to $90.8 million for the latest half year. Net profit after tax from continuing operations was $9.8 million, up 27 percent from $7.7 million in the same
half of last year.
But the company sold its European operations for gross cash of $78.7 million, incurring a loss of $28.3 million and turning the local outfit’s half-year result into a net loss after tax of $18.5 million. MYOB shares closed unchanged at $1.10 on the ASX yesterday.