Belmont-based GenusPlus Group is making its second acquisition since listing on the ASX, having agreed to purchase assets from the administrators of Victoria’s Tandem Corp.
Belmont-based GenusPlus Group is making its second acquisition since listing on the ASX, having agreed to purchase assets from the administrators of Victoria’s Tandem Corp.
GenusPlus, a power and telecommunications services provider, has agreed to pay $3.4 million in cash for some of Tandem’s contracts, intellectual property, IT systems, plant and equipment, and employee contracts.
That includes an agreement with Telstra Corporation to provide field services, including access networks services and installation and maintenance works, for five years.
The contract includes a one-year extension option.
Telstra intends to replace the Tandem agreement with a new contract to GenusPlus subsidiary Genus Services.
The group is set to gain about 120 employees from Tandem – also a contractor for Foxtel – and engage with more than 1,000 subcontractors.
GenusPlus managing director David Riches said the deal was in line with the company’s strategy to expand its communications division.
It expects to retain Tandem’s offices in Melbourne and Sydney, which it says will facilitate the continuing of operations under contracts being purchased.
“We look forward to working with existing and new industrial, commercial and residential customers in the communications sector and continuing to deliver outstanding services and innovative solutions to our clients,” Mr Riches said.
Tandem, which recently appointed Shine Lawyers as administrators, had an annualised revenue of about $75 million, according to accounts provided to GenusPlus.
The Belmont-based company says it will fund a portion of the acquisition cost with existing cash, last reported to be $22.5 million.
It is GenusPlus Group’s second acquisition since listing on the ASX in December last year.
The company recently proposed to acquire all the shares in Sydney-based Connect Engineering Pty Ltd (trading as Connect Infrastructure) and its subsidiaries for about $5.5 million in cash and scrip.
However, GenusPlus has made a number of acquisitions since it was established as Powerlines Plus in 2009, including the purchase of Henderson-based construction company EC&M.
Shares in GenusPlus closed up 5.8 per cent today to trade at 92 cents.
