Telecommunications company Inabox (ASX:IAB) has announced its intention to acquire Anittel Group (ASX:AYG) for $9.88 million.
According to Inabox's CEO and managing director, Damian Kay, the acquisition will position it as a “strong challenger’ in the ICT and cloud services markets.
“With over 200 staff and a national footprint the combined group will be able to offer its client’s end-to-end IT, cloud and communications solutions in 14 locations across metropolitan and regional Australia,” he said in a statement.
In addition, Inabox will acquire a Cisco hosted collaboration solution (HCS) developed by Anittel. The HCS platform has been used by the Tasmanian government for unified communications. The platform is expected to create growth of Inabox’s annuity revenue streams.
Anittel won the $45 million five-year contract in August 2012 to provide managed voice services to the Tasmanian government.
Kay added that the acquired business will continue to operate under the Anittel brand with the same management.
“Anittel’s customer focus, service execution and technical capability are exceptional and being able to broaden our revenue base into new products, services, customer segments and regions through a trusted advisor delivery model is very attractive,” he said.
Anittel's executive chairman, Peter Kazacos, said it is the view of his board and the Inabox board that the acquisition of Anittel’s business will provide both firms with the financial strength to accelerate growth.
“In financial year [FY] 2014, Anittel’s revenue from continuing operations was $36 million, while Inabox’s FY14 revenue was $46 million. I believe that the combination of the Anittel business with Inabox will result in enhanced value and opportunity for our shareholders, clients and employees,” he said.
Follow Hamish Barwick on Twitter: @HamishBarwick