Melbourne IT Limited
(ASX:MLB) has announced it is proposing to buy a digital marketing firm, WME Group for about $39 million.
The internet company’s acquisition is expected to generate earnings per share accretive of 12% to 18%.
The purchase is tipped to positively impact the 2017 financial year EBITDA by up to $7.5 million (before synergies).
The company says the deal will make it a market leader in the high growth online marketing solutions space, for small and medium businesses (SMB).
The proposed purchase will be funded by a $30.7 million underwritten rights issue raising and $9 million of debt.
Shares in Melbourne IT Limited
(ASX:MLB) are in a trading halt but last traded at $2.15.
