Australia's Comms Group rises on deal with onPlatium, raises FY22 forecast

Comms

04/02/2022 02:05

** Shares of Comms Group Ltd  CCG.AX  rise as much as 9.5%
to A$0.115, hitting its highest since Dec 2021 
    ** Cloud communications provider says it will buy ICT
service provider onPlatinum for an initial consideration of A$12
mln ($8.56 million)  urn:newsml:reuters.com:*:nL8N2UE8CF
    ** Co says, the deal will add ~A$16 mln in total group
revenue, which is a ~45% increase on current business revenue 
    ** Says deal will be funded by new debt facility of A$10 mln
    ** Co also raises its FY22 guidance of underlying EBITDA to 
between A$5 mln to A$5.5 mln from  A$4.5 mln to A$5 mln 
    ** Stock posts its biggest intraday pct gain since Dec 22 
    ** As of last close, stock is flat this year

($1 = 1.4021 Australian dollars)

 (Reporting by Navya Mittal)
 ((Navya.Mittal@thomsonreuters.com;))