Comms Group Shares Dip Despite Strategic $10M TasmaNet Acquisition

Key Highlights:

• Comms Group acquires TasmaNet, boosting pro forma revenue to ~$75M
• Transaction includes critical infrastructure and 600+ enterprise/government clients
• Shares slide 8.33% to $0.055 amid $7M capital raising
   

Comms Group Ltd (ASX: CCG) saw its shares drop 8.33% to $0.055 on Friday despite unveiling a transformative acquisition of TasmaNet, a key Tasmanian telecommunications provider. The decline followed news of a discounted $7 million capital raise to fund the deal, including a $0.05 per share entitlement offer and placement.

Under the binding agreement, Comms Group will acquire TasmaNet’s business and assets for $10 million—$8.5 million upfront and $1.5 million payable within 30 days. TasmaNet services over 600 government and corporate clients and maintains a suite of premium infrastructure, including a non-NBN wireless network, fibre optic assets, private cloud services, and cybersecurity solutions.

The acquisition brings immediate scale and value, adding approximately $19 million in annualised recurring revenue and $4 million in EBITDA, significantly enhancing Comms Group’s FY25 outlook. Combined pro forma revenue is forecast to rise to ~$75 million, with EBITDA expected to climb to between $9 million and $10 million, up from the prior standalone forecast of $5–6 million.

Strategically, the move cements Comms Group’s presence in Tasmania’s high-barrier-to-entry market, with 40% of TasmaNet’s revenue derived from long-standing government relationships. The transaction also positions Comms Group as a direct NBN Retail Service Provider, paving the way for national expansion.

CEO Peter McGrath described the acquisition as “transformational,” stating it would drive geographic reach, service capabilities, and financial performance. The deal, expected to complete by late May, also introduces institutional investors to Comms Group’s register through the $4.8 million placement.

While the short-term share price reaction reflects dilution concerns, the long-term implications for Comms Group’s scale, capability, and earnings profile suggest a strategic leap forward.