SYDNEY, AUSTRALIA: Saunders International Limited has announced its agreement to acquire Automation IT Pty Ltd, a specialist automation and control systems engineering business operating in the energy, water, defence and mining industries.

The acquisition is subject to customary conditions, including change of control consents. Automation IT, established in 2000 and based in Old, employs 32 personnel across QLD, WA, and NSW, predominately qualified engineers.

The company has long-standing relationships with public and Tier 1 private-sector customers, through providing complex industrial automation and control systems.

The acquisition is expected to be EPS accretive in FY2024, with a small positive impact to EPS in the current FY2023 period. Saunders’ customers are increasingly moving towards technology-driven solutions, and Automation IT will accelerate Saunders’ market expansion into industrial automation and control systems, particularly within Queensland.

This acquisition will expand Saunders’ geographical footprint in Queensland and Western Australia.

Saunders has agreed to acquire Automation IT for an initial instalment of $4.40 million, plus a second instalment of up to $1.10 million based on 4.00x Automation IT’s Earnings Before Interest and Tax (‘EBIT’) for FY2024.

The acquisition is funded from Saunders’ cash reserves and from the issue of new SND shares. The issue of new SND shares will represent circa 1.4% of Saunders’ total issued ordinary shares.

The acquisition is structured to promote the continued performance of Automation IT and the alignment and retention of Automation IT’s Directors, Mr Geoff Bladon and Mr Anthony Templeton.

Saunders’ Managing Director & Chief Executive Officer, Mark Benson said, “We are pleased to have completed the acquisition of Automation IT and we look forward to welcoming Geoff, Anthony, and 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.”

Automation IT Directors, Geoff Bladon and Anthony Templeton said, “We 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.”

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