Melbourne IT to Wholly Acquire WME Group for AU$39M
WME Group is entering a significant new chapter. Melbourne IT (ASX:MLB) has announced plans to acquire WME Group in a deal valued at approximately AU$39 million, bringing one of Australia’s largest digital marketing agencies together with one of the country’s most established online services companies.
Founded in 2008 by Nick Bell, WME Group has grown from a single-person start-up into a global digital marketing agency operating across seven countries, with offices in Melbourne and Auckland and an annual turnover of around AU$45 million.
A strategic fit
The acquisition aligns two complementary businesses. WME Group provides end-to-end digital marketing services, including search engine optimisation, search advertising and web design, through brands such as WME, Nothing But Web and Results First. Melbourne IT operates a substantial SMB division under brands including WebCentral, Netregistry, TPP and Domainz, serving more than 450,000 direct customers and providing services to over 700,000 Australian businesses.
Together, the two organisations are well positioned to deliver greater value to small and medium-sized businesses across Australia and beyond.
Melbourne IT Chief Executive Martin Mercer described WME Group as “a logical and strong strategic fit,” noting that managed marketing has become a key growth driver for the company’s SMB division. He expects the combination to improve customer retention and lifetime value while strengthening the group’s capabilities in search engine optimisation and account management.
Emma Hunt, who leads Melbourne IT’s small-to-medium business division, said Australian small businesses are increasingly seeking a trusted partner to help them establish an online presence and then grow within an increasingly complex digital environment.
Deal structure
Melbourne IT intends to fund the AU$39 million acquisition through a capital raising of approximately AU$30.7 million, supported by around AU$9 million in debt. The capital raising is structured as a rights issue, offering shareholders one new share for every seven existing shares at an issue price of AU$2.
The transaction continues Melbourne IT’s established strategy of growth through acquisition, following its purchases of Netregistry in 2014, Uber Global and Outware Systems in 2015, and InfoReady in 2016.
What it means for the WME team and clients
WME Group’s key management will remain with the combined business, ensuring continuity for clients and a smooth transition.
Founder Nick Bell will step away from the business at the end of June. Reflecting on the sale, he said the timing was right to hand over the reins, and that it was important to him to leave the company with people committed to continuing its growth.
“I am also excited by the potential Australia is showing in providing the foundations for high-quality startups,” Bell said, signalling his intention to focus on other business interests and to support emerging Australian founders.
Looking ahead
For WME Group’s clients, the acquisition combines the agency’s hands-on, results-focused approach to digital marketing with the scale, stability and resources of a major ASX-listed company.
As Mercer noted, today’s Melbourne IT bears little resemblance to the business of a few years ago, and the addition of WME Group represents another important step in that transformation. For WME Group, it marks the beginning of a new chapter focused on helping Australian businesses succeed online.