Managed communications, cloud and IT provider Inabox Group (ASX:IAB) has bought Perth-based cloud managed service provider, Logic Communications, for $1.5 million.
The acquisition is set to double the number of Inabox Group’s engineers based in Western Australia and extend Inabox’s cloud capabilities on the western seaboard.
“We’re pleased to have acquired another great company in Logic Communications. Their product offering complements ours and also provides Inabox with 74 new clients which builds on our current footprint in Western Australia,” explained Inabox Group chief executive, Damian Kay.
Logic Communications was founded 10 years ago and according to Inabox Group, is a business that is deeply-established and respected in Perth. As a result, its services are expected to give Inabox’s existing and prospective WA customers increased local access to a range of products.
Additionally, the companies suggest that Logic Communications representa a complementary addition to Inabox’s current offerings, spanning internet services, managed IT, VoIP and cloud services.
“This acquisition provides an opportunity for Perth-based SMEs to deal locally with a national company that provides the full suite of IT services. Through this acquisition, Inabox now represents a strong alternative in WA as a full service provider to the SME [small to medium enterprise] market segment,” Kay added.
“Inabox’s Perth branch has been one of the quiet achievers, however through this acquisition has announced itself as one of the go-to full service IT, cloud and telco providers. On the back of the recent capital raise Inabox continues to further its position and presence across the country as a leading managed IT, cloud and communications provider.”
The acquisition, coming off the back of Inabox's Hostworks acquisition in February, is set to fast-track the company's cloud-based product offering, which is expected to deliver customer and revenue growth from the second half of financial year 2017 onwards. It is also expected to boost earnings immediately.
“This is another acquisition that we expect to be strongly earnings accretive in FY18, bringing with it more than an expected $1 million in earnings before interest, tax, depreciation and amortisation (EBITDA) to the Inabox Group results.”
Inabox has had a relatively successful track record with acquisitions. In February, it bought Hostworks for $7 million, in a move that is expected to see Inabox yield strategic business synergies and cross-selling opportunities as the company gains access to Hostworks' large enterprise customers such as Seek, Carsales, Ticketek, Foxtel, AHL and Seven Media.
Additionally, the company built out its IT and cloud services offering after buying Anittel for $9.88 million in November 2014.
At the time, Kay said the deal opened the opportunity for broader acquisitions in the IT space, as Inabox was previously limited predominantly to the wholesale telecommunications industry.