• Expands Comms Group's domestic service capabilities and market share in government and corporate sectors
• Adds significant network assets, including fixed wireless, fibre optic, and private cloud infrastructure in Tasmania
• Expected to increase Comms Group's annualised revenue to ~$75m and annualised underlying EBITDA to ~$9m to $10m

Comms Group Limited (ASX:CCG) has signed a binding agreement to acquire the business and assets of TasmaNet, a leading provider of premium communication and managed IT services to the Tasmanian Government and businesses in Tasmania. The acquisition delivers a strong strategic position for Comms Group's domestic operations in the government and corporate sectors, adding key network assets including a significant fixed wireless broadband network, a high-capacity fibre optic network, private cloud infrastructure, and data centre assets across Australia. The transaction also includes the planned novation of an NBNCo Wholesale Broadband Agreement, elevating Comms Group to become an NBN direct Retail Service Provider. The acquisition adds over 600 government and business customers, including a 10+ year relationship with the Tasmanian Government, and is expected to add proforma annualised revenue of ~$19m (95% recurring) and annualised EBITDA of ~$4m. The $10m purchase price, funded through a $7m equity raising and $10.7m debt facility, represents an EBITDA multiple of ~2.5x and is immediately earnings accretive to Comms Group. The acquisition is expected to increase Comms Group's annualised revenue to ~$75m and annualised underlying EBITDA to ~$9m to $10m.

Following the acquisition, Comms Group expects combined proforma annualised revenue of ~$75m and annualised underlying EBITDA of ~$9m to $10m.

The acquisition of TasmaNet further reinforces Comms Group's focus on increasing market share and geographical presence across the corporate and mid-market sector. The addition of Tasmanian government customers provides upside opportunities given the breadth of the combined service offering, and the Company is optimistic on the ability to leverage this diversified service offering potentially to other states and to win larger corporate customers nationally.