GenusPlus proposes acquisition of CommTel Network Solutions Pty Ltd

GenusPlus Group Ltd (ASX:GNP) has provided a conditional proposal to acquire 100% of CommTel Network Solutions Pty Ltd (CommTel) for a total net consideration of ~$6 million. CommTel, a leading technology provider of mission critical communication networks, generated ~$64m revenue and ~$4m EBIT in FY24 (unaudited). The acquisition is anticipated to be EPS accretive for GenusPlus and will position the company for the future transformation of the power grid.

GenusPlus Managing Director's Commentary on CommTel Acquisition Proposal

This is an exciting opportunity for GenusPlus to expand its national communications division with a highly specialised provider of mission critical communication network solutions. CommTel is attractive to us given its significant historical investment in developing its intellectual property to become a leading technology provider to a broad range of Tier 1 customers which has significant overlap with the rest of the GenusPlus business. We look forward to a positive outcome at the forthcoming creditors meeting and welcoming the CommTel team to the GenusPlus Group. We also look forward to working with existing and new customers in the power utilities, resources, communications, transport and public sector to deliver outstanding services and innovative solutions to our clients.

Summary of GenusPlus' Proposal to Acquire CommTel Network Solutions

GenusPlus Group Ltd (ASX:GNP) has proposed to acquire 100% of CommTel Network Solutions Pty Ltd, a leading technology provider of mission critical communication networks, for a total net consideration of ~$6 million. The acquisition, if completed, is expected to expand the capability and customer base of GenusPlus' communications division and be EPS accretive. The Proposal is subject to satisfaction of conditions precedent, including approval by the required creditor majorities, and completion is expected to occur by the end of October 2024. GenusPlus' Managing Director expressed excitement about the opportunity and the potential to work with existing and new customers in various sectors to deliver outstanding services and innovative solutions.