02.02.2021

Comms Group (ASX:CCG) Announces Completion of Acquisition of Next Telecom

Henslow is pleased to announce that Comms Group (ASX:CCG) have successfully completed their acquisition of Next Telecom and tranche 2 of the related $6.25m placement.

Established in 2008, Next Telecom is a telecommunications service providers servicing the medium sized corporate business markets in Australia. The company offers national broadband network (NBN) products, corporate fibre, cloud IP telephony and managed IT services. Post acquisition, Comms Group will have revenue of circa $33.0m and annualised pro-forma EBITDA of $4.0m+, including synergies.

The acquisition creates significant opportunity for Comms Group to lead consolidation within the domestic market and expand into regional markets. The $6.25m raised will be used to help fund the acquisition of Next Telecom shares as well as working capital, acquisition integration and transaction costs. The Placement was well supported by a broad range of Australia’s leading small cap institutional investors, existing shareholders and Directors and senior management.

This transaction proves Henslow’s strong capital raising capabilities across equity capital markets which have allowed us to assist Comms Group on financing their acquisition of Next Telecom. Henslow also acted as the Corporate Advisor to Comms Group leading the M&A transaction and supporting the Board and senior management through the entire process, including from forming acquisition strategy, conducting acquisition analysis, negotiation, through to transaction completion.

We look forward to continuing to support Comms Group grow as they increase scale and further strengthen their position in the corporate mid-market sector throughout Australia and internationally.

Click to view ASX announcement

 

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