Inabox Group has sold its Hostworks and Anittel businesses to 5G Networks in a $5.7 million deal.
In June, Inabox revealed to shareholders that it entered into preliminary and confidential discussions with potential buyers and, while proposals by the parties in question are being considered, no transaction is fully formed.
This came after the company was queried about the unusual share price activity, as previously reported by ARN.
According to 5G Networks, the acquisition will turn the company into "one of Australia's largest and most experienced cloud providers" adding $43 million of revenue.
5G Networks expects to generate annualised revenue to exceed $55 million per annum, while the combined business will employ over 200 staff servicing customers from Melbourne, Sydney, Brisbane, Adelaide, Perth, Hobart, regional NSW and Townsville.
“We pursued this acquisition because it was exactly what we needed to rapidly expand our core business streams and represents great synergy with our existing business,” 5G Networks managing director Joe Demase said.
Substantial cross selling opportunities have been identified, according to Demase.
"The acquisition of an of an established hosting and IT services business support by necessary infrastructure will support growth and customer demand in 5GN’s core business streams,” the company told shareholders.
Inabox reported a net loss after tax of $1.6 million for the six months ending December 2017, a 434 per cent year-on-year fall from the same period the previous year.
Inabox bought Hostworks Group for $7 million in a move aimed at strengthening its cloud offering. In November, the company had flagged its Hostworks cloud solutions business was going to have a negative impact on the group’s financial performance.