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Daily Internet Raises GBP435,000 In Subscription To Pay For Evohosting

August 14, 2014

Rowena Harris-Doughty

LONDON (Alliance News) - Daily Internet PLC said Thursday that it has raised GBP435,000 before expenses in a share subscription with existing investors, funds it used to pay for the acquisition of Evohosting Ltd, which it bought for GBP395,000.

Daily Internet provides web hosting, e-mail and domain name registration services.

The company acquired Maidenhead-based Evohosting, which supplies domain name and shared hosting services to its over 5,000 active customers. Daily Internet said that Evohosting brings a strong customer base, and will allow it to cross-sell its existing services.

In the financial year ended May 31, 2013, Evohosting posted revenue of GBP419,000 and earnings before interest, taxes, depreciation and amortisation, adjusted for non-recurring items, of GBP156,000.

"Overall operational costs are expected to be reduced through efficiencies. The acquisition is expected to be immediately earnings enhancing to the group as a whole," the company said in a statement.

To pay for the acquisition, Daily Internet raised GBP435,000 via a share subscription, priced at 2 pence a share. It issued 21.75 million new shares.

"We continue to seek earnings enhancing acquisitions in order to add critical mass to the company's operations," said Managing director Abby Hardoon in a statement.

Daily Internet shares were untraded Thursday morning at 1.875 pence per share.

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Source: Alliance News

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