to Acquire the Wholesale and Enablement Business of IAB
Sydney, Oct 8, 2018 AEST (ABN Newswire) - The Board of Australian communications specialist MNF Group (
ASX:MNF) is pleased to announce that it has entered into an agreement to acquire the wholesale and enablement business from Inabox Group (ASX:IAB). The business being acquired provides services to over 500 wholesale customers throughout Australia.
MNF will pay between $30.5m and $33.5m in cash subject to all earn out conditions being met and final calculation of working capital. Based on normalised FY18 performance, the Board anticipates the acquisition to generate revenues of $55.0m and approximate EBITDA of $4.2m 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.
Acquisition Summary
- Purchase price of $30.5m payable in cash on completion.
- A $3.0m earn out that is subject to the successful commercialisation of recently procured enablement service offerings payable in 3 tranches:
o Tranche 1 - $0.5m payable in March 2019
o Tranche 2 - $1.65m payable in June 2019
o Tranche 3 - $0.85m payable in June 2019
- Target working capital on completion of $2.0m, that is expected to include $1.5m in cash.
- The acquired business will be debt free.
Investor Presentation
Further information and a consolidated forecast will be provided in an investor webinar scheduled for 3:00pm, Wednesday 10 October. Details found at: http://mnfgroup.limited/investors
The company encourages interested investors and shareholders to attend the webinar, as due to timing and our upcoming AGM, the management team will be unable to accommodate one-on-one meetings.
About Symbio Holdings Limited
Symbio Holdings Limited (ASX:SYM) is a software company changing the way the world communicates.
Symbio's technology replaces old-fashioned telecom networks with software, making it faster and easier to deliver modern cloud-based communication services, unlocking endless new applications for calling, messaging and phone numbers.
Symbio is the backbone for the global cloud communication industry. Over 500 service providers - from telecom start-ups to the world's biggest software companies - rely on Symbio for the connectivity, quality and expertise they need to solve complex communication challenges.
Headquartered in Sydney, Symbio powers billions of calls and messages each year, owns networks in three countries and employs over 450 staff worldwide.
For more information about Symbio visit www.symbio.global
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