GenusPlus flags CommTel takeover

GenusPlus Group has proposed a multi-million-dollar acquisition of CommTel Network Solutions, which is under administration, to expand its national footprint.

The Belmont-based infrastructure provider today announced on the market it has provided a conditional proposal to CommTel administrators, to acquire 100 per cent of the latter’s shares at about $6 million.

GenusPlus also proposed to buy out CommTel’s associated intellectual property, including confidential information, for up to $7 million.

The net consideration for the acquisition comprises a $10.1 million contribution to the deed of company arrangement fund, refinancing, estimated value of assumed liabilities and the value of working capital, GenusPlus announced.

CommTel was placed in administration on August 30.

The Victorian technology provider focuses on infrastructure solutions for the mining, oil and gas, transport, power, and public safety industries.

CommTel administrators plan to recommend GenusPlus’ proposal to creditors at the next meeting on October 7, according to GenusPlus.

GenusPlus managing director David Riches said this was an opportunity to expand the company’s national communications division.

“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,” he said.

“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.”

The proposed acquisition is subject to a number of conditions, GenusPlus said, but is expected to be completed by the end of October.

GenusPlus’ shares were up 0.82 per cent today, trading at $2.45 each as of 1.54pm AEST.