SKS Technologies buys Queensland IT service provider for $ 5 million
SKS Technologies, based in Melbourne, acquired Integrated Solutions Group Queensland for a total of $ 5 million.
Based in Queensland and employing 32 people, Integrated Solutions offers IT project management, consulting and ongoing support services including cybersecurity, data hosting and procurement, adding to the focus by SKS on audiovisual, IT, electrical and communication network solutions.
The acquisition cost consists of $ 1.8 million in cash and $ 1.2 million in new SKS shares, both due at the end of September.
The remaining amount, which can reach $ 2 million, will be available through a earn-out agreement and will be payable in equal amounts over three years.
Integrated Solutions is expected to continue to operate out of Brisbane, while SKS will use its footprint to grow nationwide.
According to SKS CEO Matthew Jinks, integrated solutions have proven to be an attractive target to seize, as SKS acquisition guidelines include companies with no or low debt, no inventory, additional working capital, high margins. , a recurring revenue model and “excellent” growth prospects.
“Integrated Solutions ticks all of those boxes, including deriving approximately 61% of its revenue from structured recurring revenue under one- to two-year agreements,” Jinks said.
In fact, the acquisition is part of the ‘third cornerstone’ of SKS ‘technological expansion as part of its overall business strategy, which focuses on generating higher margins with a recurring revenue model through the combination of computer and audiovisual networks.
“Much of our traditional work on projects in the AV space requires close collaboration with IT vendors to ensure a fully functional end result,” said Jinks.
“Having worked with Integrated Solutions on a number of successfully delivered projects, the concept of bringing these skills and expertise in-house is a logical and compelling extension of what we already offer our customers,” he said. added.
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Keywords SKS Technologies Integrated Solutions Group Queensland