Inabox picks up Hostworks

Acquires cloud services firm for $7 million

Inabox has acquired cloud services and hosting provider Hostworks for $7 million, the company announced today.

“The purchase of Hostworks gives Inabox Group the ability to manage enterprise-scale transfers of information to the cloud, in line with growing demand from our customers,” Inabox Group CEO Damian Kay said in a statement.

“More and more of the companies we work with are moving towards the cloud to reduce capital expenditure on infrastructure and take advantage of the convenience of cloud services, such as increased scalability and reduced maintenance costs.

“We don’t just want to cater for this trend — we want to be the best at it. That’s why we bought Hostworks.”

The acquisition involves a $5 million upfront payment, with the remainder deferred to FY18.

Hostworks had FY16 revenue of $22 million. It is expected to contribute $3.6 million EBITDA and $1.2 million net profit after tax in FY18, Inabox said.

Inabox currently has a data centre presence in Sydney, Melbourne, Brisbane and Perth; the acquisition will add a data centre in Adelaide.

Inabox said that Hostworks has “considerable cloud infrastructure, and strong relationships with key suppliers including AWS, MS Azure, IBM Softlayer and Google Cloud Platform”, which are managed through a Hostworks-provided dashboard.

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