Comms Group Agrees to $30m Divestment of Non-Core onPlatinum Division

Comms Group (ASX: CCG) has agreed to the $30 million divestment of its onPlatinum information technology-managed services division to Australian IT services provider Thinkex Holdings.

The consideration will consist of an upfront cash payment of $28.5m and $1.5m held in escrow for 12 months, payable subject to completion of agreed conditions.

Comms Group will also provide transitional services for a period of 12 months across select operational and corporate functions to ensure continuity for customers, suppliers, and employees.

Comms Group has appointed global investment banking boutique Q Advisors as financial advisor to the divestment.

Proceeds will be used to reduce net debt, strengthen the company’s balance sheet and provide a capital return to shareholders.

Core Communications Focus

onPlatinum has been a solid contributor to Comms Group since it was acquired for $12m in 2022, broadening the company’s product offering into managed IT and cloud services and expanding its presence in Queensland, New South Wales, and Victoria.

However, the company believes the divestment will strengthen its renewed strategic focus on its core cloud communications, unified communications, domestic telecoms, and global services businesses.

Chief executive officer Peter McGrath said the move would simplify the group’s operations and return capital to shareholders, while allowing both companies to pursue their respective strategic priorities with greater focus.

“For Comms Group, the divestment releases capital, strengthens our balance sheet, and enables management to concentrate on our core […] growth strategy,” he said.

“We believe this is the right strategic step for Comms Group and its shareholders, and we look forward to updating the market as the transaction progresses.”

Updated FY26 Guidance

Comms Group also provided a trading update for FY26 that reflects strong continued performance across the business.

The company now expects FY26 revenue of between $74m and $75m, up 31.8% on the mid-point guidance compared to the previous corresponding period.

Underlying EBITDA of between $8m and $8.5m (up 44.7% under the same comparison) is anticipated, with approximately $500,000 in duplicated mainland network costs for the Next and TasmaNet businesses to additionally be removed during FY27.

Comms Group said its TasmaNet integration is on track and to be fully integrated in the next two months, while network consolidation rationalisation savings remain in line with previous guidance.

The company plans to provide an update on its financial outlook, along with further detail on how the capital proceeds will be distributed to shareholders, following settlement of the onPlatinum divestment in Q1 FY27.