The Australian Securities Exchange (ASX) is set to play host to one of the country’s latest tech consolidations, with the merger of five different telco resellers that together aim to launch a $7.5 million initial public offering (IPO).
The five companies set to make up the new entity, CommsChoice Group, include its namesake, CommsChoice, along with Telegate, Telaustralia, Oracle Telecom and Woffle. Together, they are expected to create an entity with combined annual revenues of almost $28 million.
With offices in Sydney, Melbourne, Singapore and the Philippines, CommsChoice has made a name for itself as an enterprise-focused telco and IT provider, specialising managed data and voice solutions and unified communications service.
The company also claims a vendor-neutral managed IT solution called Adaptive Connectivity-as-a-Service (ACaaS).
Telegate, which also has offices in Sydney and the Philippines, specialises in Voice over IP (VoIP) systems and other phone offerings while also providing internet services from several vendors.
Woffle, meanwhile, is based in Sydney and claims Telstra, Optus, NBN Co, Cisco and D-Link among its vendor partners. At the same time, Teleaustralia and Oracle Telecom are both based in Victoria, and offer voice, data, phone and cloud hosting services.
Together, the companies plan a $7.5 million initial public offering (IPO), and expect to be listed on the ASX by 20 December.
Of the capital raising effort, $2.28 million will go to the IT and telecommunications service providers set to comprise the group, while $3.9 million will be used for working capital and corporate expenses, according to a prospectus, dated 28 November.
The prospectus also outlined the combined financials of the companies involved in the listing, along with the expected earnings of the combined entity, revealing that the entities comprising CommsChoice Group generated approximately $20.1 million of revenue and $817,000 of NPATA in FY17.
Based on the historical performance, the directors believe that CommsChoice Group is positioned to achieve pro forma forecast revenue of $27.83 million, EBIT of $3.42 million and NPATA of $3.38 million in CY18.
Together, the CommsChoice Group entities expects to be able to provide customers with a range of integrated solutions, including selection, procurement, implementation and management of over 400 vendor-neutral products and services by drawing upon more than 20 wholesale telecommunications carriers and IT suppliers.
“This important milestone will accelerate our ability to provide optimal ICT solutions that fundamentally transform the way business connects,” CommsChoice CEO, Grant Ellison, said in a LinkedIn post on 6 December.
“On listing, CommsChoice Group will have acquired five complementary information and communications technology (ICT) businesses.
“I would like to thank all of our staff past and present for their exceptional efforts in getting us this far, our carrier and vendor partners for their support and expertise, and of course our clients for their trust and loyalty in allowing us to play an important part in their business journeys,” he said.