TasmaNet transformational acquisition and raise presentation
| Stock | Comms Group Ltd (CCG.ASX) |
|---|---|
| Release Time | 16 May 2025, 9:05 a.m. |
| Price Sensitive | Yes |
Comms Group acquires TasmaNet, raises $7M
- Acquiring TasmaNet, a leading Tasmanian telco and IT services provider
- Raising $7M via placement and entitlement offer to fund acquisition
- Transformational deal, increasing proforma revenue to ~$75M and EBITDA to $9-10M
Comms Group Ltd (ASX: CCG) is acquiring the business and assets of TasmaNet, one of the leading providers of premium data communication services to government and businesses in Tasmania. TasmaNet operates one of Tasmania's largest (non NBN) fixed wireless networks and owns a fibre network in Hobart, with over 600 government and business customers. The acquisition price of $10M represents an EBITDA multiple of ~2.5x. Comms Group is funding the acquisition through a mix of equity and debt, including a $7M capital raise via a placement and underwritten 1-for-9 non-renounceable entitlement offer. The transformational acquisition will increase Comms Group's proforma annualised revenue to ~$75M (90%+ recurring) and proforma annualised underlying EBITDA to $9M to $10M. TasmaNet is expected to contribute ~$19M in revenue and ~$4M in EBITDA on an annualised basis.The strategic rationale includes expanding Comms Group's scale and service capabilities, establishing a dominant market position in Tasmania with blue-chip customers, and delivering a strong financial profile with high recurring revenue and margins. Comms Group sees significant opportunities to cross-sell its services to TasmaNet's customer base and leverage the combined entity's capabilities to win larger corporate customers.
Comms Group (standalone) is targeting FY25 revenue of $55M to $57M and underlying EBITDA of $5M to $6M. On a proforma basis, the combined entity is expected to have annualised revenue of ~$75M and annualised underlying EBITDA of $9M to $10M.
Comms Group sees significant organic and inorganic growth opportunities to increase scale and add additional capabilities. The company is actively pursuing M&A discussions and is focused on the digital transformation of the business to implement common Group-wide processes and systems.