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Highlights
- Comms Group expands national footprint through $10 million TasmaNet deal
- Revenue expected to grow to $75 million annually post-acquisition
- Strengthens position in cloud services and regional network assets
Comms Group (ASX:CCG), a telecommunications and digital services provider, has signed a binding agreement to acquire TasmaNet, a Tasmania-based digital infrastructure company, for $10 million. This strategic move is expected to enhance Comms Group’s revenue base, expand its client portfolio, and reinforce its position in Australia’s corporate and government telecommunications markets.
The acquisition includes a number of critical infrastructure assets, such as a fixed wireless broadband network (non-NBN) across Tasmania and a high-capacity fibre optic link within the Hobart CBD. These assets will significantly enhance Comms Group’s regional presence, particularly in Tasmania, while also boosting its managed services and cloud offerings.
Once finalised, the acquisition is projected to lift Comms Group’s annual revenue to around $75 million and deliver annualised EBITDA between $9 million and $10 million. With this deal, Comms Group strengthens its footprint within the ASX300 index— a key benchmark for Australian mid-to-large cap stocks.
The company’s CEO, Peter McGrath, commented that TasmaNet’s experienced team and infrastructure will complement Comms Group’s existing operations, particularly in serving enterprise, government, and mid-market sectors. The acquisition aligns with Comms Group’s strategic goals to scale services nationwide and offer robust digital solutions, including private cloud capabilities for businesses both in Tasmania and on the mainland.
In parallel with the acquisition, Comms Group is raising approximately $7 million through an institutional placement and entitlement offer. The funds will be allocated to the TasmaNet purchase and related transaction costs. In addition, the company has secured a $10.7 million debt facility with Regal Funds Management to support the deal.
TasmaNet also brings strong cloud infrastructure to the table, bolstering Comms Group’s service stack in Infrastructure as a Service (IaaS), a segment gaining increasing importance among ASX dividend stocks.
Pending third-party approvals, the deal is expected to be completed by May 2025. This acquisition underlines Comms Group’s commitment to expanding its technological capabilities and network resilience, supporting long-term strategic growth across Australia.
