Leeds-based Spice has acquired Australian radio communications company ComGroup.

Utility support services provider Spice Plc has acquired Australian radio communication specialist ComGroup for £6.9 million.

The telecoms division of Spice began in 2002 when the company bought telecommunication company Simoco. ComGroup designs and distributes Simoco branded handsets and systems and this close collaboration will “create strong operational synergies” for Spice.

The acquisition will enable Spice to offer fully comprehensive technical solutions to clients, including “self-healing networks” and improved network performance.

Simon Rigby, Chief Executive Officer, said: “Spice has taken the opportunity, on favourable terms of net assets plus £0.8 million which enhance earnings, to reunite these two businesses as a result of the strong demand for ComGroup’s products within our utility client base.

“In so doing, we have once again globalised Simoco’s brand. The acquisition strengthens our capability to manage complex distributed systems where flexible telecoms solutions are essential to our client’s network operations.”

The acquisition news follows the release of Spice’s financial results, which reveal profits before tax and amortisation up 58% to £32.3m, and revenue up 24% to £386m. Spice is based in Leeds, England, with shares priced at 66.75p.

ComGroup has its headquarters in Melbourne, Australia, employs more than 100 people and has annual revenue of £15m, with operating profits of £2.2m.