Daily Internet PLC Acquisition and Subscription to Raise £625,000 (5230Y)

TIDMDAIP

RNS Number : 5230Y

Daily Internet PLC

27 January 2014

27 January 2014

Daily Internet plc

("Daily Internet" or "the Company" or "the Group")

Acquisition of NameHog Limited and Subscription to raise GBP625,000

Daily Internet plc (AIM: DAIP), the AIM listed internet hosting and cloud infrastructure provider, is pleased to announce the acquisition of the entire issued share capital of NameHog Limited ("NameHog") and a subscription to raise GBP625,000, at a subscription price of 1.65p per share, with existing institutional and other investors (the "Subscription").

Acquisition

NameHog is an established UK internet hosting provider supplying domain name registration, shared web hosting and dedicated server products to a diverse range of over 5,000 SME customers, including approximately 2,200 active customers. NameHog is being acquired for a cash consideration of GBP150,000, to be satisfied out of the proceeds of the Subscription, and is expected to be immediately earnings enhancing to Daily Internet.

NameHog has delivered consistent growth with revenue and EBITDA for the year ended 30 April 2013 of GBP179,624 and GBP25,060 respectively. Following the acquisition, NameHog will be relocated to Daily Internet's Nottingham office and NameHog's 5,000 plus customers integrated into the Company's billing and provisioning platforms, with NameHog's operational costs significantly reduced as a result. Daily Internet expects cost rationalisations to be evident within three to six months of the acquisition and in addition will seek opportunities to cross-sell the Group's products into NameHog's customer base while retaining the NameHog brand.

Subscription

The Group has raised GBP625,000 (before expenses) through the issue of 37,878,788 new ordinary shares of 0.5p per share at a subscription price of 1.65p per share ("Subscription Shares") with existing institutional and other investors.

Pursuant to the Subscription, Chris Evans, Non-Executive Director, has subscribed for 344,290 Subscription Shares. Following admission of the Subscription Shares Chris Evans will be beneficially interested in 7,907,026 ordinary shares representing 1.94 per cent. of the enlarged issued share capital of the Company.

Application will be made to the London Stock Exchange for the Subscription Shares to be admitted to trading on AIM and it is expected that admission will become effective and that dealings in the Subscription Shares will commence on 31 January 2014.

Following admission of the Subscription Shares, the issued ordinary share capital of the Company will be 407,672,080.

Abby Hardoon, Managing Director of Daily Internet plc, commented:

"We are delighted to announce the acquisition of NameHog which will be immediately earnings enhancing to the Group and offers quickly realisable operational synergies. The acquisition is in line with our buy and build strategy and expands our client base and product and services portfolio, whilst providing numerous cross-selling opportunities.

"We are also delighted with the support from our existing institutional and other investors and we look forward to providing updates on progress and further opportunities."

For further information please contact:

 
 Daily Internet plc 
  Abby Hardoon, Managing Director 
  Michael Edelson, Chairman                         [phone] 
 
 Sanlam Securities UK Limited (Nominated Adviser 
  and Joint Broker) 
  Simon Clements/Richard Goldsmith/Catherine 
  Miles                                             [phone] 
 
 Loeb Aron & Company Limited (Joint Broker) 
  Dr Frank Lucas/Peter Freeman                      [phone] 
 
 Walbrook PR Limited 
  Bob Huxford/Guy McDougall/Paul Cornelius          [phone] 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

MSCLLFSLLSIRFIS