Arq Group

Arq Group, formerly known as Melbourne IT Group,[1] is an Australian Internet company listed on the Australian Securities Exchange (ASX: ARQ).

Arq Group Limited
Traded asASX: ARQ
PredecessorMelbourne IT Limited
FoundedMelbourne, Victoria, Australia (1996 (1996))
FounderUniversity of Melbourne
Number of locations
Sydney, Melbourne, Brisbane
Area served
Australia and New Zealand
Number of employees



Arq Group's history dates back to April 1996 when Eugene Falk AM OBE and Professor Peter Gerrand[2] were appointed as Chairman and CEO, respectively, for the University of Melbourne’s new commercial subsidiary Melbourne Information Technology International Pty Ltd, which commenced operations from 1 May 1996. Professor Iain Morrison[3] was appointed the third foundation director of the company. The company chose to trade under the business name of Melbourne IT from its earliest days.[4]

Contrary to popular mythology, the company was not set up to trade in domain names. The company's charter was to demonstrate the University's strategic leadership in working with industry and government in selected areas of IT. Its first and continuingly profitable business, up until its float on the ASX in December 1999, was its joint venture ASAC (Advanced Services Applications Centre) with Ericsson Australia. ASAC was set up to develop applications with synergies between the Internet and advanced telecommunications, particularly mobile products. ASAC was recognized by Ericsson as one of its Global Design Centres in 1997, and contributed $0.5 million in profit to Melbourne IT in the year before its float. ASAC was incorporated as an independent joint venture in December 2000, but became a casualty of Ericsson's downsizing of its global R&D following the bursting of the Dot-com bubble in July 2000. On 21 June 1996 a front-page article in The Australian Financial Review by Charles Wright drew attention to the parlous state of commercial domain name registration in Australia, where a large backlog of Australian businesses were waiting for processing of their applications for domain names by the part-time domain name administrator, Robert Elz, senior system administrator in the University of Melbourne's Computer Science Department, who declined to communicate with the media.

Robert Elz had been assigned the role of administrator of the .au top-level domain by Jon Postel since 1989, an arrangement that worked quite satisfactorily through the early 1990s when the Internet was largely of interest only to tertiary educational and research institutions. The AFR article caused Melbourne University to be aware of the possible commercial value of the rights to assign domain names, but also of the damage to the University's reputation if the registration of domain names was not transferred to a competent commercial organization. The Head of the Computer Science Department persuaded Mr Elz to transfer the administration of names to the University's subsidiary Melbourne IT, which he did by way of a non-exclusive licence, to be reviewed after five years. Melbourne IT was awarded a grant of $100,000 by the Government of Victoria in 1996 in return for registering the backlog of over 2,000 applications free to the applicants, and used this money to build its first domain name registration software platform.

From October 1996 Melbourne IT began pricing its services by charging for new and renewed names at 10% below the market rate set by Network Solutions for the popular .com names, and was the first domain name registrar worldwide to introduce trademark checking and money-back service assurance guarantees.[5] It also introduced three-tiered pricing for different levels of turnaround time, during the first two years 1997-98 before eligibility decisions were sped up by online access to the Australian trademarks database and to registries of Australian business names and gazetted geographical names. Melbourne IT also moved to align to Robert Elz's rather idiosyncratic eligibility criteria (e.g., ‘no name should in principle be registered if found in an English dictionary’; but exceptions had been made to this before 1996 such as and, which annoyed other applicants to the rules for registering business names in Australia).

In April 1999 Melbourne IT was selected by ICANN to be one of the first five registrars to register .com, .net and .org names in competition with the incumbent Network Solutions. Entry into the international domain name market from July 1999 greatly increased the company's revenues and market value, and caused the University to prepare the company for an Initial Public Offering. On 14 December 1999 Melbourne IT was floated on the ASX, near the height of the dot-com bubble.

It benefited from a cover story by finance journalist Ivor Rees in a weekend edition of the Australian Financial Review in November 1999, describing it presciently as the ‘Hottest Float of the Year’. Interest in the shares was particularly strong because it was the only Australian tech stock floating that year with a track record of actual profitability. Demands for a prospectus were so high that complaints were aired in the media by members of the public unable to obtain one. The chief beneficiaries of the float were the clients of the underwriters, JB Were and CommSec, some of whom made massive stag profits when the stock peaked at $8.20 on the day of its float, compared with the IPO price of $2.20. In 2000 the Victorian Auditor-General held an investigation into whether the stock was undervalued by the underwriters when listed, but concluded that the float had been carried out properly.[6]


The University of Melbourne received a gross benefit of $93.5 million through selling 85% of its equity in the float, as well as a pre-float dividend of $1 million, but left the company with $7.5 million as working capital. The stock held up above $8 for four months following the dot-com bubble of April 2000, peaking briefly to $17 in February, but sank to $5.99 after the company released a realistic market outlook on 23 August 2000.

During January to August 2000 the founding CEO Peter Gerrand founded subsidiaries in the US and Europe , and participated in the creation of auDA as the national domain name industry self-regulator. On 14 September he announced he would leave the company on 30 September for family reasons;[7] after this announcement the stock sank by a further 10%. He was succeeded by his deputy Adrian Kloeden , and continued as a consultant to the company until after the hosting of ICANN's meeting in Melbourne in March 2001. Adrian Kloeden was succeeded as CEO by Theo Hnarakis in November 2002 .

In September 2006, Melbourne IT acquired the Australian Internet hosting company, WebCentral Group (ASX:WCG) via a scheme of arrangement and delisted the WebCentral group from the ASX. Founded in 1997, WCG have 2 data centres in Brisbane, one at Wickham Street, Fortitude Valley, and another in Spring Hill at a PIPE Networks facility. Staff from Webcentral's Brisbane office also manage a large colocation area in an Equinix datacenter in Mascot, New South Wales.

Dr Bruce Tonkin , who joined Melbourne IT in 1999 as Chief Technology Officer, was elected convenor of ICANN's important GNSO (Generic Names Support Organization) constituency from June 2004 to June 2007, and will serve on the ICANN Boards as the GNSO's elected representative from May 2008.

On 30 April 2008 Melbourne IT announced it is going to purchase VeriSign's Digital Brand Management Services for US$50m.[8]


On 23 December 2011 Melbourne IT accidentally leaked the details of more than 28000 customers[9]

On 30 July 2012 Melbourne IT servers were hacked by Anonymous[10]

MelbourneIT was also a new gTLD consultancy, and the week of the January, 2012, which was the launch of ICANN's new gTLD application period, it announced that it had been working with over 100 applications on behalf of various clients. MelbourneIT also noted that many of their clients are Fortune 500 companies or associated with the Association of National Advertisers (ANA). The latter fact is particularly noteworthy given the fact that ANA had led a high-profile anti-gTLD expansion campaign following the approval of the program, and was successful in achieving multiple hearings in the U.S. congress and other anti-TLD expansion forums and press.

In February, 2012, one of the first public Brand TLD ventures, StarHub, announced that it had partnered with MelbourneIT's Digital Brand Services to help apply for and manage its proposed .starhub TLD. Later that month, MelbourneIT revealed that they were currently working on 120 new gTLD applications, and that they expected to bring that number to 150 before the application window closed in just over a month. It was also announced that MelbourneIT was working as new gTLD consultants with the governments of the Australian states of Victoria and New South Wales, and with ARI Registry Services, to prepare bids for .melbourne, .sydney, and .victoria.[23] The company ended up handling 148 applications, approximately a quarter of which came from Australian clients. [11]

On 29 August 2013 Melbourne IT CEO Theo Hnarakis announced[12] that the Syrian Electronic Army had attacked[13] the New York Times Web site by tricking people managing the New York Times DNS domain as a reseller of Melbourne IT to disclose their login credentials in a targeted phishing attack.

On 27 February 2014 Melbourne IT announced the acquisition of rival NetRegistry Group for $50.4 million.[14][15]

On 17 December 2014 Websites and emails were knocked offline by a botched migration. At the time of writing both had been offline for over a month with outages continuing[16]

On 25 February 2015, Melbourne IT revealed plans to buy Uber Global for $15.5 million.[17]

In May 2017, Melbourne IT acquired WME Group[18] for approximately AU$39 million( US$39 million).[19][20][21]

On 28 May 2018, Melbourne IT Group officially rebranded as Arq Group.

See also


  1. Martlew, Patrick (30 May 2018). "Out with the old: Melbourne IT officially relaunches as Arq Group". IT Brief Australia. Retrieved 2 July 2018.
  2. "Professor Peter Gerrand". Zoominfo. Retrieved 7 May 2008.
  3. Wasserman, Elizabeth. "Department of Information Systems". University of Melbourne. Archived from the original on 28 August 2007. Retrieved 7 May 2008.
  4. "Our History".
  5. Wasserman, Elizabeth (23 April 1999). "ICANN to can NSI's domain-name monopoly". CNN. Retrieved 7 May 2008.
  6. Department of Information Systems (1 June 2000). "University welcomes A-G's Report on Melbourne IT float". University of Melbourne. Retrieved 7 May 2008.
  7. Karen Stuart (14 September 2000). "Gerrand Leaves Melbourne IT". Retrieved 18 June 2007.
  8. "Business Management Software". 30 April 2008. Retrieved 30 April 2008.
  9. "Thousands of domain registrar's customer details exposed". 23 December 2011. Retrieved 17 January 2015.
  10. "Hackers publish AAPT data in protest over web spy plan". 30 July 2012. Retrieved 17 January 2015.
  12. "Melbourne IT chief explains how New York Times website domain was hacked" (Article in The Australian 29 August 2013, retrieved 2 September 2013)
  13. "Times Site Is Disrupted in Attack by Hackers" (Article in New York Times 27 August 2013, retrieved 2 September 2013)
  14. "Melbourne IT snares NetRegistry in $50.4m deal". Australian Financial Review. 27 February 2014.
  15. "Melbourne IT buys rival NetRegistry". The Australian. 28 February 2014.
  16. "Australian websites offline as Melbourne IT struggles with migration of 350,000 customers". 17 December 2014. Retrieved 17 January 2015.
  17. "Melbourne IT adds 400 resellers in $15m Uber Global acquisition". 25 February 2015. Retrieved 25 February 2015.
  18. "Melbourne IT to wholly acquire WME Group for AU$39m".
  19. "Melbourne IT buys WME Group". 1 May 2017. Retrieved 5 September 2017.
  20. "Melbourne IT Acquires Digital Marketing Agency WME Group". Web Host Industry Review. Retrieved 5 September 2017.
  21. McLean, Asha. "Melbourne IT to wholly acquire WME Group for AU$39m | ZDNet". ZDNet. Retrieved 5 September 2017.
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