MELBOURNE - Melbourne IT has sold its Digital Brand Services division to US based Corporation Services Company for $152.5 million cash - equal to 95 percent of Melbourne IT's market capitalisation before the sale.
The division was created in 2008 when Melbourne IT combined its Corporate Brand Services division with the Verisign digital branding business which it acquired for US$50 million.
It is said to provide online brand protection and consultancy services to large global organisations.
"While this was not a business that we had specifically earmarked for sale, given the value creation provided by the transaction this was an opportunity which could not be ignored," said Melbourne IT CEO Theo Hnarakis.
"At the time we were approached, it reflected our market cap for a third of our business. For the board not to consider that wouldn't have been appropriate.