Entrepreneur Domenic Carosa has unveiled his 11th acquisition in the last 12 months with the purchase of premium SMS service 199-Query for an undisclosed amount.
The business is what is known as an “ask any question” service – users send in a question via SMS and get in answered for a flat fee of $2.50.
The purchase was made by Carosa’s investment company Dominet Digital, in conjunction with DSAH Holdings, an investment vehicle owned by Danny Wallis, the founder of listed software company DWS.
Carosa is best-known as the founder and former chief executive of digital media and marketing company Destra. It was placed in administration in November 2008, seven months after Carosa stepped down.
It is Carosa’s second acquisition in the “ask any question” space. In April, Dominet acquired Australia’s largest service, 199-Bongo, from ailing digital marketing firm CommQuest for $2.35 million.
The two acquisitions give Dominet a strong position in the Australian market and a platform to take the services overseas.
We’re definitely the largest in the space. We recently launched in Ireland and we are in the process of launching in the North America.”
He says the market is growing strongly, mainly because of what he calls “ego texting” where users ask question about themselves, their friends and their love life.
Carosa says 199-Query’s technology platform will be particularly important to the group’s overseas expansion.
“There are a couple of established players in that market but the US is a good 20 or 25 times larger than Australia. We only need a few crumbs to make to make a big difference to our growth.”
The acquisition is the latest in a flurry of deals Carosa has done in the last 12 months.
While Carosa believes the worst of the downturn is actually yet to hit Australia, he says buying conditions in the internet and mobile space have never been better, with highly indebted companies forced to flog assets at bargain prices.
“What this downturn has really allowed us to do is acquire a lot more for less. A million dollars today has the same buying power as $5 million a few years ago.”
The big difference between these latest acquisitions and the large number of deals Carosa executed at Destra is debt. Destra had plenty, but Dominet has none, thanks its backing by “a dozen high-net worth individuals”, including Wallis.
“This is the best time to be buying assets,” Carosa says. .
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
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