Telecommunications and IT services provider Inabox has announced that it will acquire rival Anittel for a combination of Inabox shares, AU$500,000 in cash, and AU$1.5 million in deferred cash, for a total value of AU$9.88 million.
Anittel, which plays strongly in the government sector, will help boost Inabox's corporate and government customer base, the company said in announcing the deal on Wednesday. Anittel has 200 staff members based in 14 locations across Australia, and Inabox said that the takeover will combine Anittel's 1,000 clients with Inabox's 200 existing wholesale partners.
In acquiring Anittel, Inabox will also acquire Anittel's Cisco hosted collaboration solution, which is being used in the company's telecommunications contract with the Tasmanian government.
The deal will still need the approval of Inabox shareholders, and an extraordinary general meeting is likely to be held in late December.
Anittel will continue to operate under the same brand name after the deal. Its current CEO and chairman Peter Kazacos will stay on to consult Inabox on the integration of Anittel, and will obtain a 10.6 percent share of Inabox as a result of the deal.
Kazacos said today that Anittel's existing customers will now get access to more services through the acquisition.
"Our customers will also benefit from a broader range of services, backed by the combined strength of two great Australian companies. Unlocking the value of what we have built over the last six-plus years represents a huge opportunity for customers, staff, and shareholders of the combined group," he said in a statement.
"Peter and his team have built a significant business with broad geographic coverage. 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," Inabox CEO Damian Kay said in a statement.
In July, Inabox also purchased Queensland-based cloud and voice-over-IP provider Neural Networks Data Services in a deal worth AU$350,000.