Comms Group (ASX:CCG) acquires business and assets of TasmaNet and concurrently raises $7.0m via a Placement and Entitlement Offer

Henslow is pleased to have acted as M&A Corporate Advisor to Comms Group Ltd (ASX:CCG) on the acquisition of the business and assets of TasmaNet, a leading provider of premium communications and managed IT services to the Tasmanian Government and businesses in Tasmania.

This is a highly strategic acquisition for Comms Group, adding key network assets, corporate and government customers, and taking the combined group annualised revenue to approximately $75m with underlying annualised EBITDA of $9m – $10m.

The purchase price was $10m representing ~2.5x EBITDA multiple and is immediately earnings accretive to Comms Group. The purchase price will be funded by a:

• $7.0m equity raising; and
• Committed $10.7m debt facility provided by Regal Funds Management with $4.0m used to fund the acquisition and $6.7m used to refinance the existing senior fancier (if required)

This is the 5th acquisition Henslow has advised Comms Group on over the past 5 years.

Henslow also acted as Joint Lead Manager and Joint Underwriter on a $7.0m capital raise undertaken via a $4.8m placement and a $2.2m, 1 for 9, entitlement offer.

The successful transactions provide a further example of Henslow’s ability to partner with exciting growth companies and provide combined and complementary M&A and equity capital markets (ECM) services.

This transaction further adds to Henslow’s strong track record in the telecommunications and technology sectors advising several clients on their M&A growth ambitions whilst providing expansion capital to support those ambitions.

For further information, please contract Scott McInnes (Managing Director) at smcinnes@henslow.com, Stephen Macaw (Managing Director) at smacaw@henslow.com and Sebastian Bell (Director) at sbell@henslow.com