Saunders International, a construction engineering company, has acquired Automation IT, a specialist automation and control systems engineering business, in a push to expand the former’s capabilities across industrial automation and technology solutions.
Automation IT was purchased with cash reserves from Saunders and new shares issued, with delayed earnout payments dependent on FY2024 outcomes, the ASX-listed company revealed.
According to the terms of the agreement, Saunders will pay an initial instalment of $4.40 million, plus a second instalment of up to $1.10 million depending on 4.00x Automation IT’s Earnings Before Interest and Tax (‘EBIT’) for FY2024.
The acquisition is expected to be earnings per share (EPS) accretive in FY2024, with a little positive impact on EPS in the present FY2023 timeframe.
Automation IT anticipates FY2023 revenue of about $10 million and EBIT of approximately $1 million.
As part of Saunders, Automation IT will continue to provide engineering solutions, including consulting, projects, and support services, to its existing clients.
Automation IT will also boost Saunders’ market expansion into Industrial Automation and Control Systems, notably in Queensland, as clients increasingly want technology-driven solutions.
Mark Benson, Saunders’ managing director and CEO, expressed his delight to have completed the acquisition of Automation IT, saying he looks forward to welcoming the entire Automation IT team to Saunders.
“The acquisition will expand Automation IT’s existing capabilities and reach, while enhancing Saunders’ service offering to our existing customers and further extend our expansion into technology?based infrastructure,” Benson noted.
Geoff Bladon and Anthony Templeton, Automation IT directors, also expressed they are excited to be joining the Saunders team.
“By combining our collective expertise, we will be stronger together and well positioned for our next phase of growth. This is a great outcome for both our teams and our customers,” the IT directors stated.
Established in 2000, Automation IT is a company based in Queensland, specialising in the installation and support of industrial control and automation systems for the energy, water, defence, and mining sectors.
