Credit: Supplied
Australian listed ICT provider Inabox (ASX:IAB) has revealed a restructuring plan following the acquisition of Anittel.
According to a company statement, Inabox has identified substantial synergies across all businesses expected to generate cost savings of approximately $3 million.
Inabox bought Anittel for $9.88 million in November 2014 and was completed in January.
Synergies include surplus leased premises, duplicated back-office and administration services and overlapping roles, which will become redundant.
These synergies have not previously been included in Inabox’s forecasts or guidance.
From the approximately $3m in savings, Inabox will reinvest circa $1 million to support new sales and growth initiatives, including adding new sales staff.
The changes are expected to enhance the Group’s operating and sales capabilities, without impacting its operations, and will be implemented during this financial year.
As a result FY15, will include significant non-recurring restructuring and transaction costs associated with the acquisition of Anittel.
Inabox managing director, Damian Kay, said the company was delighted with the progress made to date with integrating the Anittel business.
Read more: Inabox launches integrated Anittel
"I am confident that our new structure will lead to a stronger, more profitable combined business in FY16," he said.
"I am also encouraged that cross selling has just generated the first $1 million-plus order for Anittel from a lead generated by another division of our business.
"We expect cross-selling will accelerate as Anittel is further integrated into the group.”
Inabox supplies wholesale telecommunications (fixed, mobile, data) and cloud products and associated services, including billing and technical and customer support, to retail service providers around Australia through wholesale brands, Telcoinabox, iVox and Neural Networks.
Inabox also enables mass market consumer brands to enter the telecommunications market by leveraging its network and systems capabilities.
