Comms Group Ltd Agrees to Sell onPlatinum for $30M to Focus on Cloud Growth
Comms Group banks $30 million from onPlatinum divestment
Comms Group (ASX: CCG) has entered into a binding share sale agreement to divest its IT managed services division, onPlatinum, to Thinkex Holdings Pty Ltd trading as efex for total consideration of A$30.0 million, subject to customary completion adjustments.
Completion of the transaction remains subject to the satisfaction of certain conditions precedent. The sale releases capital, simplifies the Group, and sharpens its focus on core cloud communications growth.
Notably, the figure represents a significant uplift on the $12 million Comms Group paid to acquire onPlatinum in 2022, underscoring the value built across the division during its time within the Group.
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Deal structure and payment terms
The consideration is structured around an upfront cash payment of A$28.5 million, with a further A$1.5 million held in escrow for twelve months. The escrow amount is payable subject to completion of agreed conditions that are expected to be met.
Comms Group will also provide transitional services for a period of twelve months across select operational and corporate functions to ensure continuity for customers, suppliers and employees.
Upon completion, the two parties will enter into an ongoing transition services arrangement. Under this arrangement, Comms Group will continue to provide telco-related services to onPlatinum and efex, while onPlatinum will continue to provide a range of services to Comms Group related businesses. Q Advisors, a global TMT investment banking boutique, acted as financial advisor during the sale process.
| Component | Detail |
|---|---|
| Upfront cash payment | A$28.5 million |
| Escrow | A$1.5 million held for 12 months, payable subject to agreed conditions expected to be met |
| Total consideration | A$30.0 million |
| Transition services period | 12 months |
| Expected settlement | Q1 FY27 |
Why Comms Group is selling a profitable division
The divestment is consistent with Comms Group’s renewed strategic focus on its core cloud communications, unified communications, domestic telecoms and global services businesses.
Since its acquisition in 2022, onPlatinum has been an important contributor to the Group, broadening its managed IT services, cloud and mid-market customer capabilities. The division also expanded the company’s presence across Queensland, New South Wales and Victoria.
The company has stated clearly that the divestment of onPlatinum will reduce Group revenue and earnings. This is presented as a deliberate simplification trade-off rather than a setback. The Board believes the transaction streamlines the Group’s operating model and strengthens its position to drive growth in its core communications businesses, especially its high-growth Global division.
Following completion, Comms Group will be focused on the following core operating priorities:
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Global cloud and white label telecom communications (Microsoft Teams calling services; unified communications as a service; wholesale and partner voice services)
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Domestic business telco services (network, connectivity and collaboration solutions; continued expansion of recurring revenue communications services)
Peter McGrath, CEO and Managing Director
“This transaction allows both Comms Group and onPlatinum 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 cloud communications, unified communications and global telco growth strategy.”
What the company will do with the proceeds
The proceeds from the divestment will be applied in accordance with Comms Group’s capital allocation framework. A capital return represents a direct shareholder benefit, which the company has flagged as part of its intended use of proceeds.
The framework outlines two priorities:
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Reducing net debt and strengthening the balance sheet
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Providing a capital return/distribution to shareholders
The company will provide further detail on the expected financial impact of the transaction following completion as part of its next scheduled market update.
FY26 trading update shows revenue up 31.8%
Alongside the divestment, Comms Group provided a trading update for FY26 reflecting continued strong performance across the business.
Importantly, the FY26 guidance incorporates a full-year contribution from onPlatinum, as the sale is expected to settle in Q1 FY27. Readers should therefore note that the figures below are not post-divestment.
Comms Group’s record 1H FY26 results, which saw EBITDA surge 87% to $4.5m alongside a maiden interim dividend, established the financial platform from which this divestment and capital return strategy now proceeds.
Key highlights include:
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FY26 Revenue is expected to be between $74.0m and $75.0m, an increase of 31.8% (mid-point guidance vs pcp)
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FY26 Underlying EBITDA is expected to be between $8.0m and $8.5m, an increase of 44.7% (mid-point guidance vs pcp)
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Underlying EBITDA guidance includes circa $500k in duplicated mainland network costs within the Next and TasmaNet businesses, which will be removed during FY27
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TasmaNet integration is on track and expected to be fully integrated in June/July 2026
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Telco network consolidation rationalisation savings are in line with previous guidance
Understanding cloud communications and why this pivot matters
The company provides managed communications and PSTN replacement services across more than 65 countries, supported by 24×7 global support.
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What’s next for shareholders
Settlement of the divestment is expected in Q1 FY27. Following settlement, Comms Group will provide an update on its financial outlook for FY27, along with further detail on how the capital proceeds will be distributed to shareholders.
The company will host an investor conference call on Wednesday 1 July 2026 at 11am to discuss the sale of onPlatinum and comment on the trading update. Attendees are required to register before joining via the Zoom webinar link in the announcement.
Key dates ahead include:
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1 July 2026 — investor conference call on the sale and trading update
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Q1 FY27 — expected settlement of onPlatinum divestment
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Post-settlement — FY27 outlook and capital return detail
With the proposed divestment, Comms Group signals a deliberate move towards a simpler operating model centred on its core cloud communications and high-growth Global division.
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