ASX-listed services company, Allied Technologies Australia, has entered into a reverse takeover of ARA Group which will see the building services business gain a backdoor listing on the exchange.
Under the terms of the deal, Allied will become a subsidiary of the ARA Group, alongside Bass Electrical, Datatech Australia, Monarch Group and Autometrix. Allied chairman and managing director, Michael Addison, will also remain on board, with ARA group co-founder, Ed Federman, becoming the managing director of the combined group. All staff are expected to be retained.
Federson said ARA was a much larger business than Allied. The company was launched in 2001 as a holding company to acquire building service and building product companies. Combined, the two companies would be worth about $100 million
"I've been on a mission to build a significant building services business for the past four-and-a-half years," he said. "Some parts of the two businesses overlap, but we are playing in very different markets. Allied Technologies is very government-based. ARA Group, meanwhile, is mainly in the commercial and industrial areas."
Federman, who created ARA Group with Leo Browne, has already written to his customers and suppliers, noting that the businesses "... are quite complementary and this combination provides an opportunity for the ARA Group to become a listed company in Australia".
He said ARA's highly decentralised management style would continue. Federman further noted that he was now focused on the next five years and claimed there was no limit to what the business couldachieve.
Allied made headlines in December when it sold its telecoms, enterprise and utility integrator, TUSC Computer Systems, for $9.5 million to Ericsson after acquiring the company just 12 months earlier.