Comms Group to spend $10m to buy TasmaNet business and assets

Comms Group has signed a signed a binding agreement for the $10 million acquisition of the business and assets of communication and managed IT services provider TasmaNet, and select assets of the broader Field Solutions Holdings Group (FSG).

Comms Group also stated that it continues to evaluate other potential M&A opportunities.

FSG bought TasmaNet in 2021 before FSG was placed into voluntary administration on 19 February 2025.

Comms Group described TasmaNet as a “separate and profitable division of FSG”.

The Comms Group agreement is subject to conditions and is expected to complete before the end of May 2025.

If the sale goes ahead, it will give Comms Group assets in Tasmania and the mainland, with the company talking-up the strategic significance of the deal for its business nationally.

The agreement covers a “portfolio of corporate data services, cross-sell opportunities and the potential of expanding the provision of government and corporate IT and telecommunications (IT&T) services to other Australian states.”

Comms Group will gain a “significant”, non-NBN fixed wireless broadband network in Tasmania, high-capacity fibre optic network through the Hobart CBD, and network facilities in Hobart and Launceston.

The agreement also covers “significant” private cloud (Infrastructure as a Service) assets in Tasmania and the mainland, for government and corporate clients. Also included in the deal are data centre assets (points of presence) “across Australia” to extend and upgrade its existing network capabilities.

With the “planned novation of an NBNCo WBA (Wholesale Broadband Agreement), this elevates the group to become an NBN direct Retail Service Provider paving the way for future national growth, synergy opportunities and lowering the cost for NBN-based services,” the company stated.

Also included is a “portfolio of additional cyber security solutions including Firewall-as-a-Service and Threat assessment and prevention capabilities.”

The sales also includes “new service offerings in data (internet)”, managed IT services, Infrastructure as a Service (managed private cloud services) and security services on long term contracts.

Comms Group would gain more than 600 government and business customers with about 40 percent revenue derived from a “10+ year relationship” with the Tasmanian Government.

It would also gain “select FSG mainland managed IT service customers”.

The acquisition would expand scale in Comms Group’s existing managed IT and private cloud services, which it sees creating greater opportunity to attract larger corporates.  

It “reinforces” Comms Group’s focus on increasing market share and geographical presence in the corporate and mid-market sector, the company stated.

Over time, it wants to “leverage this diversified service offering potentially to other states and to win larger corporate customers nationally.” The acquisition provides “further expansion across the eastern seaboard beyond existing operations in VIC, NSW and QLD.”

Following the acquisition, Comms Group expects combined proforma annualised revenue of about $75 million and annualised underlying EBITDA of about $9 million to $10 million.

Comms Group is raising $7 million via a placement and non-renounceable entitlement offer.

“This acquisition will be transformational for Comms Group,” stated Peter McGrath, Comms Group CEO and managing director, “and clearly aligns with our acquisition strategy for expanding our groups domestic service capabilities in addition to increasing our market share into the government and corporate mid-market sectors, adding to our geographical reach and materially improving our financial performance.”