FSG acquires TasmaNet for $13 million

ASX-listed telco Field Solutions Holdings (FSG) has acquired Hobart-headquartered TasmaNet for $13 million.

FSG said TasmaNet’s capabilities would augment and accelerate the rollout of its Regional Australia Network across the country, including software-automated private cloud and managed services.

The company calls the network Australia’s fourth telco network, with a focus on rural, regional and remote areas across the country. It is constructing 16 new networks over the next two years.

TasmaNet owns and operates a fixed wireless network across Tasmania, and also resells enterprise NBN broadband services nationally. It also has secure private clouds, where customers can procure and manage virtual compute and storage infrastructure and resources.

The telco also has a presence in the mainland, trading as Vastnet and Netmode in Queensland and New South Wales, respectively.

“TasmaNet represents a hand-in-glove acquisition for FSG. Both organisations operate business-grade fixed wireless networks in their respective territories,” FSG chief executive Andrew Roberts said.

“TasmaNet capabilities augment and accelerate the delivery of FSG’s Regional Australia Network (RAN) as it constructs sixteen new networks over the next two years. This acquisition provides additional scale, reach and depth to deliver and operate our networks.”

Roberts added FSG will leverage TasmaNet’s Hobart-based team and telco operations experience to expand RAN, and will also work closely with the Tasmanian Government to establish University and TAFE pathways to tap into the skilled graduate talent pool.

FSG said it will also retain TasmaNet’s management and staff while also expanding
services delivered in Tasmania.

TasmaNet chief executive Rob Vernon said, “TasmaNet now has the ability to deliver its products and services across FSG’s nationwide footprint.”

“TasmaNet’s extensive cloud and managed services offerings will be integrated into FSG’s network automation and orchestration platform. “We share the same digital first approach to services delivery.”

The acquisition also boosts FSG’s own managed services, which Roberts said has seen “tremendous” growth in the past 12 months, especially with the addition of TasmaNet’s products and services.

FSG said TasmaNet would add more than $19 million in annualised revenues and over $1.25 million in EBITDA annualised before synergies. Its full-year guidance has been updated to between $4.5 million to $5.5 million, with estimated revenue of $45 million.

The $13 million purchase price also includes an additional $2 million through an earn out tied to revenue for FY2022.