Inabox cuts Anittel acquisition price from $9.88 million to under $7 million

Inabox cuts Anittel acquisition price from $9.88 million to under $7 million

Amends acquisition agreement in finalisation of deal

Inabox has negotiated a reduction in the original acquisition price of Anittel for $9.88 million, to under $7 million with the finalisation of the contract.

Inabox and Axxis Technology (formerly Anittel), have entered into an agreement to vary the business purchase agreement signed in November 2014.

The new agreement means Inabox is now immediately released from remaining post-completion obligations relation to the operation of the Anittel business.

It is also free to implement its restructuring and integration plans now.

Inabox managing director, Damian Kay, told ARN the company ended up paying $6.153 million in shares, a $500,000 initial cash payment and it will now pay $150,000 in July.

"We wanted to make some changes a lot earlier to realise the synergies after we had the hands on the wheel for as couple of months," he said.

"We said we would like to settle earlier and so we settled for $150,000 in lieu of the $1.5 million [in deferred cash under the original agreement], and what it means is there are no warranties or anything like that.

"So basically, the relationship with AYG or Axxis has now ended completely."

Kay said the company paid under $7 million as opposed to the $10 million at the beginning.

"We settled all up for about seven in the end. It was a good deal. Good for us."

Kay said he was delighted to be able to finalise the post-completion arrangements.

"This allows us to restructure and fully integrate the Anittel business sooner than would otherwise have been possible," he said.

"As a result, we expect to realise significant cost savings, releasing cash that can be reinvested in the growth of the combined business.

Read more: Inabox launches integrated Anittel

"All shareholders will benefit, including the approximately 1300 Axxis shareholder who received Inabox shares earlier this year."

Kay said the main focus was to deliver the two year HCS Cloud contract for the Tasmanian government.

"That is absolutely our number one focus right now," he said.

"We have just over 10,500 services in operation now and by September-October, we will drive that towards 15-16,000 and that's our main target right now."

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Tags Damian KayPeter KazacosAxxisInabox

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