Monday, 08 October 2018 11:43

MNF Group to buy Inabox in deal worth up to $33.5 million Featured

MNF Group CEO Rene Sugo MNF Group CEO Rene Sugo

Australian-listed telecommunications software and services provider MNF Group is set to acquire managed IT cloud and telecommunications services company Inabox Group in a deal valued at between $30.5 million and $33.5 million.

MNF Group (ASX: MNF)announced on Monday it had entered into an agreement to acquire the wholesale and enablement business from Inabox Group (ASX: IAB), which provides services to more than 500 wholesale customers throughout Australia.

MNF says it will pay for the acquisition in cash subject to all earn out conditions being met and final calculation of working capital.

And, based on normalised FY18 performance, the MNF board anticipates the acquisition to generate revenues of $55 million and approximate EBITDA of $4.2 million before potential synergies and savings.

MNF says the initial purchase price will be funded through an extension of its existing revolving acquisition facility, while the earn out components are expected to be funded with free cash flow.

Completion of the deal is expected on 30 November, 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,” said MNF Group chief executive Rene Sugo.

“The company is also recognised as the leading provider of SaaS enablement services to the industry – strongly complementing the MNF business.”

Here’s MNF’s summary of the proposed acquisition:

A $3.0m earn out that is subject to the successful commercialisation of recently procured enablement service offerings payable in three tranches:

  • Tranche 1 – $0.5 million payable in March 2019
  • Tranche 2 – $1.65 million payable in June 2019
  • Tranche 3 – $0.85 million payable in June 2019
  • Target working capital on completion of $2.0 million, that is expected to include $1.5 million in cash.
  • The acquired business will be debt-free.

Subscribe to ITWIRE UPDATE Newsletter here


The much awaited iTWire Shop is now open to our readers.

Visit the iTWire Shop, a leading destination for stylish accessories, gear & gadgets, lifestyle products and everyday portable office essentials, drones, zoom lenses for smartphones, software and online training.

PLUS Big Brands include: Apple, Lenovo, LG, Samsung, Sennheiser and many more.

Products available for any country.

We hope you enjoy and find value in the much anticipated iTWire Shop.



iTWire TV offers a unique value to the Tech Sector by providing a range of video interviews, news, views and reviews, and also provides the opportunity for vendors to promote your company and your marketing messages.

We work with you to develop the message and conduct the interview or product review in a safe and collaborative way. Unlike other Tech YouTube channels, we create a story around your message and post that on the homepage of ITWire, linking to your message.

In addition, your interview post message can be displayed in up to 7 different post displays on our the site to drive traffic and readers to your video content and downloads. This can be a significant Lead Generation opportunity for your business.

We also provide 3 videos in one recording/sitting if you require so that you have a series of videos to promote to your customers. Your sales team can add your emails to sales collateral and to the footer of their sales and marketing emails.

See the latest in Tech News, Views, Interviews, Reviews, Product Promos and Events. Plus funny videos from our readers and customers.


Peter Dinham

Peter Dinham - retired in 2020. He is a veteran journalist and corporate communications consultant. He has worked as a journalist in all forms of media – newspapers/magazines, radio, television, press agency and now, online – including with the Canberra Times, The Examiner (Tasmania), the ABC and AAP-Reuters. As a freelance journalist he also had articles published in Australian and overseas magazines. He worked in the corporate communications/public relations sector, in-house with an airline, and as a senior executive in Australia of the world’s largest communications consultancy, Burson-Marsteller. He also ran his own communications consultancy and was a co-founder in Australia of the global photographic agency, the Image Bank (now Getty Images).

Share News tips for the iTWire Journalists? Your tip will be anonymous




Guest Opinion

Guest Reviews

Guest Research

Guest Research & Case Studies

Channel News