Tuesday May 6, 05:43 AM

Melbourne IT Buys VeriSign Digital Brand Manager

ComputerWire Staff

Melbourne IT, an Australia-based provider of domain registration and online services, has acquired VeriSign's digital brand management services business for $50m. The acquisition is expected to quadruple its enterprise customer base.

The company said it will combine its corporate brand service division with VeriSign's DBMS business to create a new business division called Melbourne IT Digital Brand Services that will enable it to expand its presence in Europe and the US.

The company said the deal is expected to contribute $30m in EPS in 2009, and save annual costs in excess of $1.5m. The company also expects no contribution from the new business to revenue in 2008 after transition costs of $2.8m.