Teaminvest Private Group acquires 50% stake in Brodersen Systems Asia Pacific

SYDNEY: Teaminvest Private Group Limited (ASX:TIP) announced on February 24, 2025, that its subsidiary, Automation Group Investments Pty Ltd (AG), has acquired a 50% interest in Brodersen Systems Asia Pacific Pty Ltd (BSAP), the local importing subsidiary of Danish automation solutions provider Brodersen A/S.

Founded in 1969, Brodersen is a market leader in remote telemetry units, sensors, secure SCADA systems, and business optimization software. The company serves clients globally across various sectors, including water, electricity, oil and gas, infrastructure, transportation, and renewable energy. In the fiscal year 2024, Brodersen supplied telemetry hardware to over 15,000 sites worldwide.

BSAP, which generated over $2.6 million in revenue and $0.4 million in profit after tax in FY24, will now be jointly owned by AG and Brodersen. AG will manage local operations and drive growth, while Brodersen will continue to invest in new product development. As part of the deal, BSAP has been granted exclusive distribution rights for Brodersen products in Australia, New Zealand, Malaysia, Singapore, Indonesia, the Philippines, Papua New Guinea, and the South Pacific.

AG CEO Graham Nisbet highlighted the strategic importance of the acquisition, stating, “Having worked with Brodersen for nearly a decade, this acquisition is the next logical step in our partnership. It strengthens our market position, reduces risks, and secures future growth in telemetry distribution revenue.”

The acquisition expands AG’s geographic reach beyond Australia, where it already holds a leading position in the telemetry market for water utilities. The deal also broadens the range of industries and products AG can offer, which is expected to drive growth in existing markets.

Key terms of the acquisition include an upfront payment of $0.4 million, with deferred consideration of up to $0.2 million subject to sales performance. BSAP’s exclusive distribution rights are set for an initial term of five years, with a rolling three-year renewal option starting from the second year post-completion.

In a related transaction, Teaminvest Private Group has agreed to sell up to 10% of AG to its management for $0.3 million. This includes an initial purchase of 2.5% of AG, with options to acquire an additional 2.5% in three tranches over 36 months. The transaction values AG at approximately $3.0 million, consistent with the price Teaminvest paid for its full acquisition of AG in July 2021. The discounted buy-in is intended to reward management for their efforts and long-term commitment to the company.