SYDNEY: Dynamic Group Holdings Limited (ASX: DDB), a water services company, has announced the acquisition of Airwell Flow Testing, a division of Airwell Group Pty Ltd, for A$2 million.
The deal is expected to be completed in February 2024, with A$1.5 million paid upfront and A$0.5 million deferred until August 2024.
Airwell Flow Testing is a leading provider of water bore flow testing services, using proprietary software and hardware to remotely monitor and control the testing systems. The company has been operating in Western Australia for over 20 years, serving tier-1 customers in the mining, agriculture, and environmental sectors.
The acquisition is highly complementary to Dynamic’s existing Welldrill business, which offers water drilling and pumping solutions.
The two businesses have previously collaborated to deliver additional services to their clients. The acquisition will enhance Dynamic’s water related capabilities, lower its capital intensity, and diversify its earnings.
Dynamic Group CEO, Geoff Newman, said:
“Dynamic is excited about the acquisition of the Airwell Flow Testing business. While only a relatively minor bolt-on acquisition, Dynamic has identified a number of organic growth opportunities and synergies with the existing Dynamic business that should assist in driving growth.
The acquisition bolsters the offering of Dynamic’s water-well business, Welldrill, and provides a foothold in the growing flow testing industry which is lower capital intensity than existing drilling operations.
We look forward to an accelerated integration of Airwell Flow Testing within Dynamic.”