Macquarie Telecom searching for acquisitions

Macquarie Telecom is looking to acquire small web-hosting businesses along with pumping more cash into its own efforts.

The announcement comes after the group announced earlier this week that pre-tax earnings for the full-year will be about $28-29 million, up from the previously forecast $26-28 million.

‘We have been looking at acquisitions for the last six to nine months, more in the hosting industry rather than the telecommunications [industry],” company secretary Michael Simmonds told Fairfax.

”Part of the problem is there are not many hosting businesses of a size that we would be interested in buying.”

Additionally, chief executive David Tudehope said in a statement that the company will continue investing money into its own web-hosting services.

“This result supports the strategic direction we have taken as we build momentum in our higher margin hosting business. Over the next fiscal year we intend to invest approximately an additional $15 million over our current capital expenditure run rate to expand our hosting capacity to support growth in this business.”