SKS Technologies picks up Queensland IT services provider for $5M

SKS Technologies picks up Queensland IT services provider for $5M

Consisting of $1.8 million in cash, $1.2 million in new SKS shares and up to an additional $2 million over three years.

Matthew Jinks (SKS Technologies)

Matthew Jinks (SKS Technologies)

Credit: Supplied

Melbourne-based SKS Technologies has acquired Integrated Solutions Group Queensland for a total of $5 million. 

Headquartered in Queensland and employing 32 staff, Integrated Solutions offers IT project management, consultancy and ongoing support services, including cyber security, data hosting and procurement, adding to SKS’ focus on audio-visual, IT, electrical and communication networking solutions. 

The acquisition cost consists of $1.8 million in cash and $1.2 million in new SKS shares, both due on completion at the end of September. 

The remaining amount, which is up to $2 million, will be available via an earn out arrangement and will be payable in equal amounts over three years. 

Integrated Solutions is expected to continue to operate from Brisbane, while SKS will utilise its footprint to grow nationally. 

According to SKS CEO Matthew Jinks, Integrated Solutions proved to be an appealing target to snap up, as SKS’ acquisition guidelines include businesses 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 these boxes, including deriving approximately 61 per cent of its revenue from recurring income structured under one to two year agreements,” Jinks said. 

In fact, the acquisition fits into SKS’ “third cornerstone” of technology expansion within its overall business strategy, which focuses on driving higher margins with a recurring revenue model through combination of IT and audio-visual networks. 

“Much of our traditional work on projects in the AV space requires close collaboration with IT providers to ensure an end result that is seamlessly high-functioning," Jinks said.

“Having worked with Integrated Solutions on a number of successfully delivered projects, the concept of bringing those skills and expertise in-house is a logical and compelling extension of what we already offer our customers,” he added.

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Tags SKS TechnologiesIntegrated Solutions Group Queensland

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