Comms Group (ASX:CCG) Acquires onPlatinum

Henslow is pleased to have acted as M&A Corporate Advisor to Comms Group (ASX:CCG) on the acquisition of onPlatinum Holdings Pty Ltd (onPlatinum), trading via OnPlatinum and Tango Technologies businesses.

Founded in 2012 and headquartered in the Gold Coast, onPlatinum represents a transformational acquisition for Comms Group, increasing total group revenue by ~45% whilst expanding the product offering to include managed IT and cloud services creating cross-sell opportunities for Comms Group’s existing customer base.

Post-acquisition, Comms Group annualised revenue is expected to be $50m+ with annualised underlying EBITDA of $7m+ including expected synergies from the OnPlatinum integration and based on full year contributions from all recently acquired businesses.

The purchase price is comprised of an initial consideration of $12m and an additional ‘out-performance’ earn out component of up to $6m, taking the maximum consideration up to $18m. The acquisition will be funded by a new debt facility of $10m established with the CBA and CCG shares issued to the vendors.

The acquisition is consistent with the Company’s growth strategy, expanding the Company’s domestic footprint into the strategically important Queensland market, adding high-quality mid-market corporate customers, and expanding the product offering in the managed IT services vertical.

This is the fourth acquisition Henslow has advised Comms Group on over the past 18 months, and highlights our ability to work with clients to achieve their growth ambitions. We look forward to building upon our relationship as they continue their progression of becoming a leading provider of cloud communications and UCaaS solutions throughout the APAC region.

Henslow’s extensive range of M&A and public market capabilities have helped create a seamless buy side buy-side process. This transaction adds to Henslow’s strong track record in the telecommunications sector.

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