Comms Group (ASX:CCG)

Acquisition of 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.

Adding scale to Comms Group's existing business

Comms Group is a leading business Telco service provider with a broad product suite servicing SME & corporate mid-market customers and wholesale & partner customers. The company is well positioned to take advantage of strong growth in the corporate ICT market.

The Highlights

  • ~5x

    Pro-forma FY21 EBITDA Acquisition Multiple

  • $1.8m

    Acquisition

  • $0.09

    Per Share

Expanding Global Network

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 and 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.

Timeline


April 2021

Acquisition of Binary Networks

January 2021

Acquisition of Next Telecom

December 2020

$6.25m Placement completed

We are delighted to welcome the Next Telecom business, management and staff and look forward to working closely with them to create increasing shareholder value. We are also very pleased with the trading progress of the Next Telecom business so far this year. We look forward to working with Next Telecom management to create compelling offers for business customers in the Australian marketplace.

Peter McGrath, Comms Group CEO & Managing Director