r personal use only
onPlatinum Acquisition
7 FEBRUARY 2022
COMMS GROUP LIMITED (ASX: CCG)
This document has been approved by the Board of Directors
only
Key Highlights
personal use
Acquires a leading provider of
ICT1 services with a high-
quality customer base
Strengthens Comms Group's position in the corporate mid-market2
Extends Comms Group's | Adds ~$16m in total group |
product offering, broadening | revenue, a ~45% increase on |
product set into the IT services | current business revenue |
market |
Expands the Company's | Expect base EBITDA contribution |
domestic footprint into QLD | of $2m3 (incl. synergies) and |
expected to grow overtime |
r
- ICT refers to Information Technology (IT) services as well as Communications Services.
- For Comms Group, Corporate Mid-Market refers to larger organisations with typically 500+ employees and monthly spend (MRR) of typically > $5,000.
3 Annualised EBITDA contribution. | COMMS GROUP | 2 |
only
Strategic Rationale
Consistent with the Company's strategy of pursuing near termaccretive acquisition opportunities
personal use
Expansion of domestic | Transformational |
footprint | acquisition |
• Provides access to | • Adds ~$16m in total |
customers in QLD and | group revenue, |
NSW via onPlatinum's | representing a ~45% |
services to SME and | increase on current |
corporate mid-market | group revenue |
• New base in QLD with | • Full year FY22, |
significant resources | underlying EBITDA |
and capabilities | guidance upgraded to |
$5m to $5.5m which | |
includes 5 months | |
trading from | |
onPlatinum |
Extension of service
offerings
- Delivers a high-quality
corporate customer
base- Broadens Comms Group's product set into the IT services market
- Extension of offerings to existing client base via onPlatinum's managed IT services and cloud offerings
Consistent with M&A
strategy
-
Targets expanding
offerings & client base - Post-acquisition,
annualised revenue is expected to be over $50m and annualised underlying EBITDA of $7m+ including expected synergies from onPlatinum1
- Post-acquisition,
r
1 | Based on full year contributions from all businesses acquired over the past 12 months | COMMS GROUP | 3 |
onPlatinum business overview
Trading via the onPlatinumand Tango Technology businesses
r personal use only
Managed services
Domestically to the
SManagedE/Corporateservices,sectorprovision of hardware,(Up to 1,000professionalempl yees)and security services
~ 54% of revenue
Data services
Wide Area Network (WAN) maintenance and services, WAN provisioning and SD- WAN offerings
~ 11% of revenue
Cloud services
Desktop as a service, Office 365
services, Windows cloud services, and
Backup as a service
~ 25% of revenue
Voice services
A fully supported PBX hosted system combining traditional phone systems, VOIP and cloud computing
~ 10% of revenue
- A strong reputation for quality, expertise and innovation
- An award-winning business with a demonstrated history of sustainable growth
- Infrastructure services that support over 55,000 requests per month - with only 4,500 that require human involvement
- ~500 customers with average revenue per customer (ARPU) of circa $3,000 per month
- Aims to have customers on longer term contracts of 3+ years
- Servicing all capital cities and headquartered on the Gold Coast with over 60 employees
COMMS GROUP | 4
r personal use only
A single point of contact for all clients
Specialisingin information communications and technology needs for clients across a broad range of industries
IT & Cloud | Security | Consultancy | Communications | |
Managed IT, Cloud, | EndPoint EDR, Firewall, | Project delivery, | Integrated solutions, | Phone, Internet, |
Infrastructure, | Domain Controllers, | Virtual CIO, Risk | National service | Digital presence |
Network, Backups & | Dark Web | assessment, Advisory | coverage, Workflow | |
data recovery | Assessment for | board, Policy & | automation | |
domains, Risk Watch | Procedure | |||
for O365 | documentation |
COMMS GROUP | 5
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Comms Group Ltd. published this content on 07 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 February 2022 00:27:05 UTC.