The directors of Inabox have unanimously recommended that its shareholders accept an offer from MyNetFone that will see MNF Group acquire all of Inabox’s operating subsidiaries.
Under the terms of the all-cash deal, MNF group will fork out between $30.5 million and $33.5 million for Telcoinabox, iVox, Neural Networks, Mobile Service Solutions and Symmetry Networks.
Collectively the brands provide services to more than 500 wholesale customers, according to MNF Group.
(The deal includes an earn-out of up to $3 million, comprising three separate tranches.)
Target completion day for the deal is 30 November. If it proceeds, MNF Group will acquire all of the Inabox’s indirect business including all employees, with the exception of the company’s CEO and CFO.
Inabox said it would use the money from the transaction to “repay all of its debts and other transaction expenses, retain an amount budgeted to operate and cover the expenses of the listed entity while it pursues a back-door listing or similar transaction, and return all remaining cash to shareholders.”
“The transaction follows a strategic review by the Inabox board and senior management and over six months of confidential discussions with several interested parties,” said Inabox CEO, Damian Kay.
“The transaction, if completed, offers our shareholders a cash return which represents a significant premium over the recent average market price of our shares.”
“MNF Group is a natural buyer for our indirect business and I am confident that our staff, customers and suppliers will benefit from becoming part of a larger, highly successful company,” the CEO said.
MNF Group said it expects the acquisition to generate revenues of $55 million and approximate EBITDA of $4.2 million before potential synergies and savings.
“IAB performs a leading role in the Australian wholesale telecommunications market and brings considerable volume and scale to the MNF business,” said MNF Group CEO Rene Sugo.
“The company is also recognised as the leading provider of SaaS enablement services to the industry – strongly complementing the MNF business.”
In August, Melbourne-headquartered 5G Networks announced that it had paid $5.7 million to acquire Hostworks and Anittel from Inabox.