Acquisition of Next Telecom and Successful Completion of $6.25m Placement
Henslow acted as the Corporate Advisor and Lead Manager to Comms Group Limited (ASX:CCG) in relation to the acquisition of Next Telecom Pty Ltd and $6.25m placement. The acquisition is transformational with significant increase in scale and product offerings of Comms Group. 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.
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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.
Post acquisition revenue
Annualised pro-forma EBITDA
Placement
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.
| January 2021 |
Acquisition of Next Telecom |
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| 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
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