Peter McGrath (Comms Group)
Comms Group has made a foray into the small- to-medium-sized business (SMB) market with the acquisition of Melbourne-based communications service provider Binary Networks.
The $1.8 million deal will see Binary founder Michael Diamond join Comms Group as head of systems and M&A systems integration, through which he will assist with future acquisitions.
According to publicly listed cloud communications provider Comms Group, Binary delivers Layer-2 data network roll-out to the group, with key points of presence in Sydney, Melbourne and Brisbane.
With a particular focus on SMBs, Binary’s purchase is said to further enhance Comms Group's strategy in cementing its footprint in that space, plus delivering its NBN solutions.
“We are pleased to welcome Binary Networks to the Comms Group business,” Comms Group CEO and managing director Peter McGrath said.
“The acquisition of Binary Networks will assist the group to modernise our systems, automate key processes and add on-line ordering and automation of the delivery of certain key products to speed up organic sales and sales ordering and assist with growth in our gross margins and thus earnings longer term.”
In total, Comms Group will pay a cash consideration of $1.44 million, subject to adjustment for working capital and net debt. The integration of the two companies is expected to complete by the first half of the financial year 2022.
The move comes just four months after Comms Group bought telecommunications service provider Next Telecom for up to $12 million.
Next Telecom is based in Sydney and specialises in servicing medium-sized businesses providing data services, including corporate fibre and National Broadband Network (NBN) products as well as cloud IP telephony, managed IT services, managed security and other telecommunications offerings.
