MNF Group acquires spare parts of Inabox Group for $30m+
8 October 2018, Written by Business News Australia
Communications specialists MNF Group (ASX: MNF) have acquired certain parts of Inabox Group's (ASX: IAB) sprawling business.
The agreement, worth between $30.5 and $33.5 million depending on how earn out conditions are met, will see MNF acquire the wholesale and enablement businesses from Inabox Group.
The business being acquired provides services to over 500 wholesale customers throughout Australia.
Based on normalised FY18 performance, the Board of MNF anticipates the acquisition to generate revenues of $55.0 million and approximate EBITDA of $4.2 million before potential synergies and savings.
The initial purchase price will be funded through an extension of MNF's existing revolving acquisition facility. The earn out components are expected to be funded with free cash flow.
Completion is expected to take place on 30 November 2018 and is subject to a number of conditions including approval from Inabox shareholders.
"IAB performs a leading role in the Australian wholesale telecommunications market and brings considerable volume and scale to the MNF business. The company is also recognised as the leading provider of SaaS enablement services to the industry strongly complementing the MNF business." Said Mr Rene Sugo, MNF Group CEO.
MNF Group Limited, (ASX: MNF) is an integrated telecommunications software and network provider, specialising in Internet communications. MNF Group was founded in 2004 and listed on the ASX in 2006.
The Group operates a global Smart Network carrying over 6 billion voice minutes per annum, with Points of Presence (POPs) in Los Angeles, New York, Hong Kong, Singapore, London, Frankfurt, Sydney and Auckland. Domestically, the Group operates the largest, fully interconnected IP Voice network in Australia.
MNF Group companies includes retail brands: MyNetFone, Connexus, CallStream, PennyTel and The Buzz; conferencing brands Ozlink, Eureka, Express Virtual Meetings and wholesale brands TNZI, Symbio Networks and iBoss.
Inabox is a listed communications company that includes three major brands: Anittel, Hostworks, and Telcoinabox.
Shares in MNF are up 4.17 per cent to $5 per share at the close of trading on Monday.
Shares in are up 41 per cent to $0.70 per share at the close of trading on Monday.
Business News Australia
Author: Business News Australia