The Inabox Group Ltd (ASX:IAB) share price has soared 20.5 cents or 41 per cent to 70.5 cents after agreeing to sell its telecommunications and enablement services business to MNF Group Limited (ASX:MNF) for up to $33.5 million in cash.
According to Inabox, the total cash distribution to shareholders, after an earn out, is potentially in excess of 80 cents per share.
MNF Group will acquire all of Inabox’s operating subsidiaries which trade as Telcoinabox, iVox, Neural Networks, Mobile Service Solutions and Symmetry Networks.
Commenting on the Transaction, Inabox CEO, Damian Kay, said:
“We are delighted to present the Sale Agreement to the shareholders of Inabox.
The Transaction follows a strategic review by the Inabox board and senior management and over six months of confidential discussions with several interested parties.
The Transaction, if completed, offers our shareholders a cash return which represents a significant premium over the recent average market price of our shares.”
The MNF Group share price has gained 14 cents to $4.94.
Based on normalised FY18 performance, the MNG Group Board anticipates the acquisition to generate revenues of $55.0 million and approximately 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. 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.