Publicly-listed MNF Group has entered into an agreement to acquire Inabox's indirect business, which includes its wholesale and enablement business.
The deal would see MNF Group pay between $30.3 and $33.5 million for the business units, with the wholesale business currently responsible for 500 customers.
The acquisition, which is subject to shareholder approval, will see MNF Group acquire all the operation entities for Inabox which includes Telcoinabox, iVox, Neural Networks, Mobile Service Solutions and Symmetry Networks.
Inabox expects the transaction to be completed by 30 November.
As a result, MNF would acquire the indirect business with all its employees apart from Inabox's CEO and CFO.
If approved, Inabox plans to use the consideration received to repay all of its debts and other transaction expenses, retain an amount budgeted to operate and cover the expenses of the listed entity while it pursues a back-door listing or similar transaction, and return all remaining cash to shareholders.
"The transaction follows a strategic review by the Inabox board and senior management and over six months of confidential discussions with several interested parties," Inabox CEO Damian Kay said.
"The transaction, if completed, offers our shareholders a cash return which represents a significant premium over the recent average market price of our shares.
"MNF Group is a natural buyer for our Indirect Business and I am confident that our staff, customers and suppliers will benefit from becoming part of a larger, highly successful company,” he added.
Inabox, which is also listed on the Australian Securities Exchange, closed the 2018 financial year with a net loss of $13 million, which the company attributed to its direct business.
A few weeks before announcing its financial results, Inabox sold its direct business to 5G Networks for $5.7 million. The direct business consisted of Hostworks, acquired in February 2017, and Anittel.