Solutions provider Inabox has secured a funding agreement worth up to $11 million with the Commonwealth Bank to facilitate future acquisitions and growth.
ASX-listed Inabox announced that CommBank has provided four facilities: a $3 million pot for future mergers and acquisitions; a $1 million working capital facility; access to an existing $3 million Anittel facility for buying Cisco Hosted Collaboration Solution and networking equipment; and a future fund up to $4 million for more HCS and network kit.
"The M&A facility will be used for acquisitions, which are strategically aligned and accretive for shareholders," read the announcement. "The purchases of iVox, Neural Networks and most recently Anittel, have demonstrated that Inabox can successfully grow through acquisition."
The asset funds would allow continued expansion of the HCS platform, which "generates substantial recurring revenues from the Tasmanian government, under a long-term agreement".
Inabox managing director Damian Kay said: "CBA has been a great supporter of Anittel for many years, providing leasing facilities for the Cisco HCS Platform. We are delighted that CBA has increased Anittel’s existing facility and will be providing new facilities, which will help accelerate growth across the whole Inabox Group."
Inabox also stated that the money would allow it to "expand its network to support the rapid growth of the enablement business (30,000-plus services) and next-generation voice and data services".
Kay said: "We look forward to working with CBA and implementing our previously announced growth initiatives in the remainder of FY15 and FY16."
Inabox has seen some significant activity in the Anittel post-acquisition period, including a $3 million cost-cutting initiative that will see offices closed and staff laid off, a million-dollar half-year loss, and the signing of $4 million worth of new customer wins.
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