Web hosting firm Melbourne IT has purchased its competitor web domain name registrar and web hosting service NetRegistry for $50.4 million, according to The Sydney Morning Herald (SMH).

Under the terms of the acquisition deal, NetRegistry chief executive Larry Bloch will become part of Melbourne IT's board as a non-executive diretor. In addition, the management team of NetRegistry will be merged with its acquirer, the report detailed.

Bloch described the deal in a blog post: "This transaction validates the tremendous success the Netregistry team have had since 1997 in building a leading web services business. The merged entity will benefit from the leading products, management team and efficiencies of both companies. I look forward to joining the board of Melbourne IT and being involved as the businesses are integrated, evolve and grow their services." 

Melbourne IT acting chief Peter Findlay said the deal would combine two of the biggest web service provider in Australia, SMH reported.