Sydney SDWAN specialist Comms Group acquires Gold Coast-based onPlatinum ICT for $12 million

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Sydney SDWAN specialist Comms Group acquires Gold Coast-based onPlatinum ICT for $12 million
Shannon Overs (onPlatinum, Comms Group)

ASX-listed IT and communications services provider Comms Group has announced it has acquired Gold Coast-based onPlatinum ICT for $12 million.

Founded in 2012, onPlatinum specialises in IT, security, consultancy, communications and print services across Queensland and New South Wales. Its vendor partners include Microsoft, AWS, HP, VMware, amongst others.

Comms Group said the acquisition would strengthen its position in the corporate midmarket and expand its presence in the Queensland market. onPlatinum will also provide additional product and service offerings to Comms Group’s customer base.

“onPlatinum is very excited to become part of this new dynamic business ICT group. We decided to join Comms Group to be part of this growth journey and bring to the group our leading IT services portfolio and relationship with many great companies,” onPlatinum chief executive Shannon Overs said.

“I am pleased to be continuing as the Head of onPlatinum and look forward to working closely with the Comms Group team.”

Apart from the initial $12 million consideration, Comms Group will also pay an additional out-performance earn-out component up to $6 million. The acquisition will be funded by a new $10 million debt facility.

Comms Group said onPlatinum is a “transformational acquisition”, expecting to contribute an estimated 45 percent increase in total group revenue. The company also brings in some 500 customers with an average per customer revenue of some $3000 per month.

Comms Group chief executive and managing director Peter McGrath said, “We are extremely pleased to welcome onPlatinum’s CEO Shannon Overs and his team to Comms Group in both QLD and NSW.”

“We are committed to driving sustained growth within the business and the acquisition of onPlatinum allows CommsGroup to further strengthen our position in the corporate mid-market by extending our product offerings and providing expansion into the strategically important QLD market.”

Looking ahead, Comms Group expects annualised revenue to reach over $50 million and annualised underlying EBITDA of $7 million. FY2022 EBITDA has also been upgraded from $5 million to $5.5 million after the deal.

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