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5G Networks acquires one of Australia's largest cloud providers

Annualised revenue for the group post-acquisition is expected to exceed $55 million.

M&A symbolic
Great synergy with 5GN's existing business

5G Networks (ASX:5GN) has completed the acquisition of lnabox's (ASX:IAB) direct businesses, providing the company with one of Australia's largest and most experienced cloud providers.

The $5.7 million transaction involved the purchase of lnabox's Hostworks and Anittel subsidiaries.

Importantly, the total annualised revenue for the 5GN group post-acquisition is expected to exceed $55 million per annum.

The acquisition is a significant step in expanding the geographical footprint of 5GN, which will now have
offices in Melbourne, Sydney, Brisbane, Adelaide, Perth, Hobart, regional New South Wales and Townsville.

 

With increased geographical presence, 5GN will be enhancing its existing network infrastructure by implementing a cost-effective network rollout across Australia.

5GN is able to offer its current network and cloud services to existing customers of the lnabox direct business, a key opportunity in delivering organic growth.

Importantly, the acquisition of an established hosting and IT services business supported by necessary infrastructure will support growth and customer demand in 5GN's core business streams.

READ: 5G Networks acquires communications provider APTel in $6 million deal

5G Networks managing director Joe Demase said: "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.

“We have expanded our geographical coverage in our key competencies - Cloud, Data and Managed Services.

“The acquisition of lnabox's direct business is accurately aligned with our acquisition strategy and 5GN is extremely excited by the positive future that lies ahead.”

Quick facts: 5G Networks Ltd

Price: 1.765 AUD

ASX:5GN
Market: ASX
Market Cap: $193.19 m
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