Melbourne IT has upgraded its earning forecasts after announcing plans to buy a data analytics provider, and offload its international internet domain names business.
The tech company is buying InfoReady for $15.4 million and selling its international domain name reseller business for around $8 million to Canadian internet firm Tucows.
Melbourne IT will raise $15 million to help pay for the acquisition of InfoReady, which offers data analytic services in Australia and Ireland.
Managing director Martin Mercer says the package of transactions is expected to boost Melbourne IT's earnings in the year ahead.
The sale of the international reseller business would remove a significant drag on the group's Small and Medium Business Division, and allow Melbourne IT to focus on its digital solutions strategy in Australia, he added.
The group upgraded its forecasts for 2016, increasing its target for statutory earnings before interest, tax, depreciation and amortisation by $3 million to a revised range of $26 million-$28 million.
Its underlying earnings forecast was lifted by $1.7 million to $28 million-$30 million.
Melbourne IT has placed its shares in a trading halt for 48 hours as it undertakes the underwritten institutional placement of new equity.
Its shares closed at $2.00 on Tuesday.
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