SYDNEY: In a significant move that reshapes Australia’s workforce solutions landscape, HiTech Group Australia Limited (ASX: HIT) has announced the acquisition of key Australian operations from Hudson Global Resources Australia, marking a transformative milestone in the company’s 33-year history.
The binding agreement, struck with Hudson’s administrators, sees HiTech acquire selected business assets contributing approximately $190 million in revenue on a pro forma FY26 basis, for an upfront consideration of $7 million. The transaction represents a strategic pivot that will fundamentally alter HiTech’s market position, expanding its national footprint and diversifying its service capabilities beyond its traditional ICT recruitment and consulting stronghold.
A New National Platform Emerges
The acquisition substantially broadens HiTech’s geographic presence, establishing operations in New South Wales, the Australian Capital Territory, Queensland, South Australia, and Western Australia to complement its existing Canberra and South Australian base. This expanded national footprint positions the combined entity as a truly national workforce solutions provider capable of supporting clients across the country.
Beyond geography, the transaction diversifies HiTech’s earnings base into professional recruitment, business support, project services, and permanent recruitment. This strategic diversification reduces the company’s reliance on any single sector or revenue stream while significantly expanding its addressable market.
Combining Strengths for Government and Private Sector Growth
A particularly compelling aspect of the deal is the complementary nature of the two businesses. HiTech has long been recognised as a leader in Federal Government capability, including Defence sector services through its membership in the Defence Industry Security Program (DISP). Hudson brings extensive relationships across both State and Federal Government agencies, alongside a diverse private sector client base.
The combination creates one of Australia’s most diversified Government workforce and professional services solutions providers, with enhanced capability to deepen existing client relationships while expanding service offerings across multiple jurisdictions.
Preserving Value Through Careful Structuring
Crucially, the transaction has been structured as an asset acquisition from the administration, allowing HiTech to acquire Hudson’s highly regarded brands, customer relationships, contractor workforce, and operating platform while limiting exposure to historical liabilities. This prudent approach maintains balance sheet discipline while capturing the full strategic value of the acquisition.
The purchase price comprises $7 million in upfront cash consideration, including a $1 million deposit payable upon signing, with conditional deferred consideration of up to $3 million payable within 12 months post-completion, subject to the future cash generation of the business.
A People-First Integration Approach
Recognising the uncertainty that Hudson’s period of voluntary administration has created for its people, HiTech has developed a disciplined integration plan focused on preserving customer, contractor, and employee continuity. Initially, the acquired assets will operate as a standalone business supported by the HiTech Group, allowing the Hudson business to maintain its focus on customer service and retain key talent.
Hudson’s greatest asset, like HiTech’s, is its people. Employees and contractors transferring to HiTech will be supported through a structured onboarding program following completion, ensuring continuity for clients and day-to-day operations. The company has also acknowledged those Hudson employees who will not transition as part of the transaction, thanking them for their professionalism and service throughout a challenging period.
Leadership Commentary
Elias Hazouri, Managing Director and CEO of HiTech Group Australia Limited, described the acquisition as a transformational milestone. “Beyond adding scale, Hudson gives us access to private sector customers, capability and government relationships we do not reach today that could take a decade to build, and creates a genuinely unique position in the Australian market,” he said.
“Our immediate priority is ensuring continuity for customers, contractors and key employees while implementing a disciplined transition program that positions the business for long-term success.”
Dean Davidson, current CEO of Hudson Global Resources Australia, welcomed the announcement as providing much-needed certainty. “Today’s announcement gives our people, contractors and customers some much-needed certainty, and provides a clear path forward for Hudson,” he said. “There is a natural alignment between Hudson and HiTech, particularly in the way we value our people, our customers and long-term partnerships.”
A Platform for Future Growth
The expanded HiTech Group provides increased operational scale, broader customer relationships, and enhanced capability from which to pursue further organic growth and disciplined acquisition opportunities. The company believes the combined entity will be exceptionally well positioned to participate in the continued consolidation of Australia’s fragmented professional services and workforce solutions industry.
The transaction remains subject to customary completion conditions including the novation of customer contracts and ACCC approval. Given these ongoing activities, the company is not providing earnings guidance at this time but will continue to update the market in accordance with its continuous disclosure obligations.
This acquisition marks a new chapter for both organisations, combining decades of industry leadership and creating a formidable platform capable of delivering broader workforce and professional solutions to Government and Private sector clients across Australia.
