MNF Group acquires spare parts of Inabox Group for $30m+

MNF Group acquires spare parts of Inabox Group for $30m+

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.

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Crypto staking: a new way to earn passive income
Partner Content
You may be familiar with traditional ways of earning passive income such as trading sto...
Etoro
Advertisement

Related Stories

“No one plans for these things”: Metricon acting CEO denies crisis rumours following founder’s death

“No one plans for these things”: Metricon acting CEO denies crisis rumours following founder’s death

Just days after the sudden and unexpected death of Metricon founder...

How tech rebooted economics and platforms broke the invisible hand

How tech rebooted economics and platforms broke the invisible hand

Growing evidence and new research explain the evolution of economic...

Monash IVF to enter WA market after agreeing initial $9.4m deal to acquire fertility provider PIVET

Monash IVF to enter WA market after agreeing initial $9.4m deal to acquire fertility provider PIVET

Reproductive care specialist Monash IVF Group (ASX: MVF) has e...

Pet food startup ilume’s Fitbit for dogs is setting a new standard for animal health and wellness

Pet food startup ilume’s Fitbit for dogs is setting a new standard for animal health and wellness

In the same way that Apple, Garmin and Fitbit have revolutionised h...