SKS Technologies (ASX: SKS) has entered a binding agreement to acquire the assets and ongoing business of APEC Technologies Group for approximately $2 million. The acquisition will be paid through the issuance of new ordinary shares at a 20% discount to the 10-day volume-weighted average price, ending five days before the sale completion.

SKS CEO Matthew Jinks stated that this acquisition aligns with the company’s strategy to enhance its capabilities and seize emerging opportunities in the sector. Combining the businesses will provide SKS with a stronger workforce and innovative technical solutions, including converged fibre networks for smart buildings, leading to scale economies and a more efficient business structure.

The acquisition is expected to generate annualized revenue above $50 million and establish a platform for long-term recurring revenue from SKS’s existing client base. Half of the shares issued will be held in voluntary escrow for 12 months post-completion. The transaction is expected to be finalized by late March and will be earnings per share accretive in the first year of combined operations.

SKS Technologies specializes in electrical and communication networking solutions and aims to be at the forefront of AV and IT convergence. Following the announcement, SKS shares rose 14.3%, trading at 24 cents.

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