Telstra acquires HCS from Inabox

Pays $4.5 million in cash

Telstra has acquired Inabox Group’s Hosted Collaboration Solutions business. The telco acquired the HCS business assets for $4.5 million in cash.

Inabox picked up HCS as part of its 2014 acquisition of Anittel. HCS has a long-term exclusive supply agreement with the Tasmanian government, involving it providing Cisco hosted collaboration services.

Telstra will progressively take over the delivery of these services to the Tasmanian government.

“The HCS business is government focused, and while we could have extended further into the enterprise market, this would have required substantial investment, resources and management focus,” Inabox CEO Damian Kay said in a statement.

“Inabox’s greatest opportunities and strengths lie in the SMB market where we have over 1,000 customers and support over 400 channel partners around Australia. Divesting the HCS Business allows us to deploy new products that target our core SMB market, and consider new strategic acquisitions.”

HCS generated EBITDA of $1.2 million on revenue of $3.7 million in FY16.

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