BlueFreeway to Buy destra Web Hosting Division

HostReview.com
Friday, November 10, 2006; 12:52 AM

Australian digital media company destra Corporation Limited has sold its web hosting division destra Hosting to newly formed entity BlueFreeway Limited for an expected $20 million subject to Blue Freeway listing on the ASX.

Digital and interactive marketing communications company, BlueFreeway, will acquire destra Hosting for a consideration expected to comprise $18 Million cash and approximately $2 million in BlueFreeway shares, pending a number of conditions precedent, including a successful public float and listing of Blue Freeway on the ASX this year or early next.

Destra CEO, Domenic Carosa said, “The capital generated from the sale of destra Hosting will be used to further strengthen destra’s balance sheet and used for acquisitions of profitable digital media businesses, which is in line with our stated corporate strategy.”

Destra board member, Paul Choiselat will join the BlueFreeway board upon completion of the sale. BlueFreeway is a recently formed digital and interactive marketing communications company which intends to offer a full suite of products and services. The proposed acquisition of destra Hosting is the first in a series of planned acquisition announcements by BlueFreeway.

BlueFreeway was co-founded by Chief Executive Officer Richard Webb, who has had a successful career in leading media and technology businesses. Prior to forming BlueFreeway, Mr. Webb was the CEO of Citect a global, Australian publicly listed industrial automation software company which was successfully sold to French publicly listed industrial conglomerate Schneider Electric earlier in the year. He was also President of Asia Pacific and Latin America of Nielsen//NetRatings (NASDAQ: NTRT), post the successful sale of the global web analytics and market intelligence company, Red Sheriff, which he lead for 5 years and successfully sold to Nielsen.

Mr. Webb said today that destra Hosting would be “a strategic acquisition for BlueFreeway as it moves to consolidate a number of leading specialist interactive marketing agencies under the BlueFreeway brand.”

“The proposed acquisition of the destra Hosting business, with a customer base of around 13,000, provides BlueFreeway with the opportunity to cross-market and grow our technology platforms and digital and interactive marketing communication services,” said Mr. Webb. Further announcements will be made about the sale becoming unconditional and the progress of Blue Freeway’s progress toward floating.

destra Corporation Ltd (www.destra.com) is Australia’s leading independent digital media company. destra is the largest independent record company (CDs/DVDs) in the country and runs the most extensive independent online music network in Australia. Destra controls significant digital and online media assets, including MP3.com.au, the largest online download network of independent and unsigned artists in the country. Destra also runs music communities, www.tranzfusion.com and www.thescene.com.au. When these assets combine with MP3.com, destra has the largest independent online music network in Australia.