Comms Group (ASX:CCG) Acquires Binary Networks Pty Ltd
Henslow has advised Comms Group in relation to the $1.8m acquisition of Binary Networks Pty Ltd. The acquisition of Binary further strengthens Comms Group’s position in the market and brings significant technology platforms, systems, and talent to the business. Henslow acted as the Corporate and M&A advisor to the transaction.
Binary services SMEs in Australia, expanding Comms Group’s footprint in Melbourne, and has strong engineering capabilities with data networks, advanced voice services and IP. Binary delivers immediate 2-Layer data network roll-out to the group, with key Points of Presence (“PoPs”) in Sydney, Melbourne and Brisbane, to add additional products, enable an uptick in gross margin and enhanced capabilities in terms of service order, automation and an overall enhancement in terms of quality of service.
The synergistic transaction is EBITDA and EPS accretive and is consistent with Comms Group’s growth strategy. The acquisition was completed on 1 April 20201 with integration expected to be completed in FY22.
Comms Group CEO and Managing Director, Peter McGrath said: “We are pleased to welcome Binary Networks to the Comms Group business. The acquisition of Binary Networks will assist the group to modernise our systems, automate key processes and add on-line ordering and automation of delivery of certain key products (e.g. NBN2) to speed up organic sales and sales ordering and assist with growth in our gross margins and thus earnings longer term. We also welcome the founder of Binary, Michael Diamond to our Group.”
Henslow’s extensive range of M&A and public market capabilities have helped create a seamless buy-side process. This is the second acquisition that we have assisted Comms Group with and we look forward to seeing the Group grow as they increase scale and further strengthen their position in the corporate mid-market sector throughout Australia and internationally.