Comms Group (ASX:CCG) Acquires Switched On Australia
Henslow has advised Comms Group (ASX:CCG) in relation to the $4.3m acquisition of Switched On Australia. The acquisition of Switched On further strengthens the Group’s position in the Melbourne market and adds over 900 SME customers and two additional sales staff to Comms Group, which will drive organic growth and increase cross-selling opportunities. Henslow acted as Corporate and M&A Advisor to the transaction. Comms Group is a leading business telecommunications provider with a broad product suite servicing SME & corporate mid-market customers and wholesale & partner customers.
Founded by Leigh Schwarm, Switched On is a Melbourne based, SME focused business telco company. The company provides a range of telco services which include; voice & data solutions, business phone systems, phone system maintenance and general managed IT and support.
The acquisition of Switched On is both EBITDA and EPS accretive and will add nearly $3m in annual revenue and ~$1m in annual EBTIDA. The annualised EBITDA for the Group is now expected to be circa $5m with further guidance to be provided with the full year results on 26 August.
Comms Group CEO and Managing Director, Peter McGrath, comments: “We are excited to welcome Switched On to the Comms Group business. The acquisition brings a strong SME customer base along with additional sales capabilities in our Melbourne Office. We also welcome founder of Switched on, Leigh Schwarm to the Group.”
Henslow’s extensive range of M&A and public market capabilities have helped create a seamless buy-side process. This is the third acquisition that we have assisted Comms Group with and we look forward to seeing the Group continue to grow and increase their position in the Australian corporate ICT sector.
See ASX announcement here