The CBA facility includes up to $3 million for future asset buys, with Inabox Group managing director Damian Kay saying it will used for acquisitions which are “strategically aligned and accretive for shareholders”.
According to Kay, the previous acquisitions of iVox, Neural Networks and most recently Anittel, demonstrate that the company can successfully grow through acquisition.
Under the financing agreement with the CBA, as well as the M&A facility for up to $3 million, the listed Inabox Group (ASX:IAB), will have access to:
• Working capital facility of up to $1m
• Existing Anittel finance facility of $3m for Cisco HCS and network equipment
• At a future time, additional finance for up to $4m of additional Cisco HCS and network equipment
Kay says the expanded asset finance facility will support continued growth of the company’s HCS Platform, “which generates substantial recurring revenues from the Tasmanian Government, under a long-term agreement”.
It also allows Inabox to expand its network to support the rapid growth of the Enablement business (30,000+ services) and next-generation voice and data services.
The working capital facility will replace a number of other existing transactional facilities and provides additional capital for growth.
“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.
“We look forward to working with CBA and implementing our previously announced growth initiatives in the remainder of FY15 and FY16.”