Shannon Overs (onPlatinum)
Publicly listed business cloud communications provider Comms Group has acquired Queensland-based managed services provider (MSP) onPlatinum for up to $18 million.
Founded in 2012 and headquartered in the Gold Coast, onPlatinum originally offered cloud and hosted PBX connectivity services.
It now provides a suite of services including cloud computing and cloud back-up, cyber security, unified communications, consulting and traditional IT managed services.
OnPlatinum currently has 60 people in offices in Sydney and Singapore and claims to have a client base spanning 450 customers.
The cloud communications specialist will initially pay $12 million for onPlatinum, which will be followed by a further $6 million for additional performance.
As a result of the acquistion, Comms Group will gain access to onPlatinum's small- to medium-sized enterprise (SME) customers in Southeast Queensland and NSW.
Other benefits for Comms Group include a 45 per cent increase in total group revenue and the broadening of its product set into the larger IT services and cloud markets, "providing additional product and service offerings for Comms Group’s existing customer base".
Comms Group's annualised revenue is expected to be over $50 million, while annualised underlying earnings before interest, tax, depreciation and amortisation (EBITDA) is predicted to reach $7 million, which includes expected synergies from the onPlatinum integration and is based on full year contributions from all businesses acquired over the past 12 months.
“OnPlatinum is very excited to become part of this new dynamic business ICT group," said the MSP's CEO, Shannon Overs. "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."
Overs added that he would be remaining in his role as onPlatinum lead.
“We are extremely pleased to welcome onPlatinum’s CEO Shannon Overs and his team to Comms Group in both Queensland and NSW," said Comms Group CEO and managing director Peter McGrath.
"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.”
The deal comes over a year after Comms Group bought Sydney-based Next Telecom for up to $12 million.
