- SKS Technologies (SKS) will acquire the assets and ongoing business of APEC Technologies Group, valued at $2 million
- SKS will purchase APEC through the issue of new ordinary shares to the vendor at a 20 per cent discount to the 10-day volume-weighted average price
- The move aligns with the company’s strategy to grow its capability in the sector
- SKS CEO Matthew Jinks said combining the businesses will deliver scale and growth opportunities
- Through the acquisition, SKS expects to achieve annualised revenue above $50 million
- SKS shares are up 14.3 per cent, trading at 24 cents each
SKS Technologies (SKS) has entered a binding agreement to acquire the assets and ongoing business of APEC Technologies, valued at approximately $2 million.
The company will purchase APEC by issuing new ordinary shares at a 20 per cent discount to the 10-day volume-weighted average price, slated to end five days before the completion of the sale.
SKS Chief Executive Officer Matthew Jinks said acquiring the Victoria-based communications and electrical solutions provider was part of the company’s strategy to grow and capture rapidly emerging opportunities in the sector.
“Combining these two businesses is an obvious next step, given the similarities in our client bases and the services we offer,” Matthew said.
“It gives [SKS Technologies] the strength of a workforce that can provide innovative technical solutions, including converged fibre networks for smart buildings, on a larger range of projects combined with the scale economies that come with a more efficient business structure,” he added.
SKS expects the acquisition will generate in excess of $50 million in annualised revenue, with its addition of APEC securing a platform to build long-term recurring revenue from the company’s existing client base.
Half of the shares issued in the sale will be held in voluntary escrow for 12 months from completion.
The transaction is expected to be completed by late March, with the acquisition earnings per share accretive in the first year of combined operations.
“APEC has developed some innovative solutions for IT and AV applications that provide the superior, secure, discrete networks that have become so much more critical in a post-COVID workplace,” the SKS CEO commented.
“[The acquisition] is a further step in SKS Technologies’ strategy to be at the forefront of the convergence of AV and IT to better connect workplaces with disparate workforces.”
With offices around Australia, SKS delivers electrical and communication networking solutions.
SKS shares are up 14.3 per cent on Friday, trading at 24 cents at 10:45 am AEDT.