SYDNEY, AUSTRALIA: The board of Webcentral Ltd have agreed to sell the block stake in Cirrus Networks Holdings Limited (ASX: CNW) in an on-market trade today.

The sale of Webcentral’s holding of 172 million shares (18.5% of CNW) will provide a cash inflow of $5.5m.

These proceeds will be used to fund potential acquisitions, on-market share buybacks as announced on 3 August 2022 and to reduce debt.

Webcentral is reviewing a number of acquisition targets and will pursue these more synergistic high EBITDA-accretive investments.

“At this stage we have decided to not pursue the acquisition of CNW, we agitated for change, more accountability and improved performance and we can see that slowly taking place. The Enterprise hardware space is challenging with tight margins, that coupled with hardware constraints makes the turnaround road a bit tougher for CNW,” Joe Demase Managing Director said.

Webcentral is an Australian owned digital services company who empower more than 330,000 customers to grow and thrive
in the online world.

The portfolio of digital services is extensive, with market leading offers across domain management, website
development and hosting, office and productivity applications and online marketing.
Webcentral currently owns and operates its own Nationwide highspeed Data Network with points of presence in all major Australian capital cities.

In addition, the Company offers managed
cloud solutions through its Cloud and Data Centre capabilities as well as managed services to optimise customers’ IT and network environments.

Supporting this is the Company’s combined rack capacity of over 1,000 racks through its owned and operated Data Centres across Melbourne, Sydney, Brisbane and Adelaide.