SYDNEY, AUSTRALIA: Comms Group Limited (ASX: CCG) has acquired onGroup Holdings Pty Ltd (“onPlatinum”) to strengthens Group’s position in the corporate mid-market, expanding the company’s footprint into the QLD market.

onPlatinum is purchased for an initial consideration of $12 million and an additional out-performance earn out component up to $6 million, taking the potential maximum consideration up to $18 million.

The onPlatinum acquisition will be funded by a new debt facility of $10 million established with the CBA and CCG shares issued to the vendors.

onPlatinum was founded in 2012 and has a strong reputation for quality, expertise and innovation. The business is headquartered in the Gold Coast and has an office in Sydney, with a total of over 60 employees.

The business trades via the onPlatinum and Tango Technology businesses. The business has approximately 500 customers with average revenue per customer (ARPU) of circa $3,000 per month, and generally aims to have customers on longer term contracts of 3+ years.

Comms Group’s CEO 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 provides expansion into the strategically important QLD market.”

onPlatinum’s CEO Shannon Overs said: “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.

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

Post-acquisition, Comms Group annualised revenue is expected to be over $50 million and annualised underlying EBITDA of $7 million+ including expected synergies from the onPlatinum integration and based on full year contributions from all businesses.

Comms Group provides a full range of IT and Communications services from the Cloud including IT managed services, cloud hosting, cloud communications and UcaaS services.