Australian ICT provider, Inabox Group (ASX:IAB), has acquired the business of telecommunications wholesale provider, CloudXchange. The entire business will be consolidated into the Inabox banner.
CloudXchange provides next generation Cloud based services and products for small and medium sized businesses, including fixed voice and data services supplied by AAPT. The company turns over about $1 million and after payment of deferred consideration, the purchase price is expected to be $240,000.
As a result of this acquisition, CloudXchange’s customers will be supplied by Inabox’s wholesale telecommunications brand, Telcoinabox, effective immediately.
“They are currently being migrated on to our wholesale billing platform and support infrastructure,” Inabox Group CEO and managing director, Damian Kay, said.
“There will be no disruption to CloudXchange’s customers and they will have access to a larger range of products, as well as back end support services such as dedicated account management and longer support hours.”
He added that the acquisition is another step for the company towards its consolidation of the wholesale aggregator market.
"This gives us further consolidation of the wholesale aggregator space. Many players have been acquired by us or gone broke. Most of our competition has gone for one reason or another over the last few years.
"The wholesale aggregator market is highly important to Inabox. It is
our history and represents greater than half the business in terms of
revenue and 2/3 of our margin contribution (gross profit). We are one
of the largest players in the market and we aim to continue to drive
market leadership," he said.
In addition, not much change is expected from the acquisition of CloudXchange.
“We expect CloudXchange to benefit from this. All that will change is their account manager and the branding on their wholesale invoices,” he added.