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ASX-listed telecommunications provider Comms Group (ASX: CCG) has signed a $10 million deal to acquire the assets and business of Tasmanian internet provider TasmaNet, following the collapse of parent company Field Solutions Holdings (ASX: FSG), which entered receivership earlier this year.
The acquisition includes the transfer of 30 FSG employees and a suite of managed service contracts and infrastructure. The transaction is expected to complete within weeks and represents a major step in the receivers’ efforts to sell down the group’s assets.
TasmaNet provides internet, cybersecurity, cloud and managed IT services to more than 600 government and business customers, including 29 Tasmanian Government departments, which contribute around 40 per cent of its revenue.
Field Solutions and several subsidiaries were placed into receivership and voluntary administration on 19 February 2025, after triggering technical defaults under senior lending facilities.
The group had been pursuing a capital raise of $6 million to $8.6 million and flagged limited cash reserves, reporting just $1.75 million in cash on hand at the end of the December quarter, with no unused finance facilities.
Comms Group CEO and managing director Peter McGrath describes the acquisition as “transformational”, boosting the company’s pro forma annual revenue to approximately $75 million, with EBITDA of $9 million to $10 million.
“This deal significantly expands our domestic footprint and strengthens our offering in the government and mid-market corporate sectors,” McGrath says.
In addition to customer contracts, the deal encompasses key infrastructure assets, including a fixed wireless broadband network in Tasmania, high-capacity fibre optic infrastructure through Hobart’s CBD, and private cloud and data centre facilities both in Tasmania and on the mainland.
It also provides a pathway to becoming a direct NBN Retail Service Provider through the novation of a Wholesale Broadband Agreement, along with enhanced cybersecurity offerings such as Firewall-as-a-Service and threat prevention tools.
The $10 million purchase is being funded by a $7 million capital raising and a $10.7 million debt facility provided by Regal Funds Management. Of that facility, $4 million will go towards the acquisition, with up to $6.7 million available to refinance the existing senior lender if needed.
Completion is expected before the end of May, subject to the novation of key contracts.
The receivers, Rob Smith and Matthew Hutton of McGrathNicol, are separately pursuing a dual-track sale campaign for FSG’s remaining mobile tower and fixed wireless assets. They also confirmed the earlier sale of FSG’s mining customer base to Pit Mining IT Pty Ltd for $4.9 million.
Field Solutions' shares remain suspended from trading on the ASX. Control of the group now rests with the receivers, who are continuing to trade the business on a going-concern basis while pursuing further asset sales or a recapitalisation.
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