PERTH: Southern Cross Electrical Engineering Limited announced Monday it has agreed to acquire Entire Operations Pty Ltd, a Melbourne-based fire protection and mechanical services company, for up to 112.1 million Australian dollars ($75.5 million).

SCEE, an electrical and instrumentation services group, said it executed a share purchase agreement to acquire 100% of Entire’s issued shares on a cash-free, debt-free basis. The deal is expected to close on or about Nov. 1, subject to customary conditions.

Entire, founded in 1985, provides integrated fire protection and mechanical (HVAC) services, including engineering, design, fabrication, construction, commissioning and maintenance. The company employs more than 490 staff across Victoria and Queensland and generated revenue of AU$191 million and earnings before interest and taxes of AU$17.5 million in fiscal 2026.

Under the agreement, SCEE will pay AU$70 million in initial upfront cash consideration at completion. An additional AU$25.8 million in deferred consideration is payable following fiscal years 2027, 2028 and 2029, contingent on Entire achieving EBIT of at least AU$17 million annually. A further AU$16.3 million is contingent on certain stretch EBIT targets being met, with the maximum payout requiring EBIT of at least AU$27.5 million in fiscal 2029.

SCEE said the transaction implies a 5.5 times EV/EBIT multiple based on fiscal 2026 actual results, assuming maximum base earn-out payments, and 4.1 times fiscal 2029 forecast EV/EBIT assuming maximum outperformance earn-outs.

The acquisition is expected to be funded through SCEE’s existing cash reserves and to result in at least 18% earnings-per-share accretion on a fiscal 2027 pro forma basis.

SCEE said it increased its fiscal 2027 EBITDA guidance to at least AU$110 million, including Entire’s forecast contribution of AU$10 million, assuming completion Nov. 1.

“The acquisition of Entire is consistent with SCEE’s strategy to add adjacent and complementary capabilities while increasing its exposure to critical services and recurring revenues,” the company said. The deal advances SCEE’s plan to build a national fire services platform and provides entry into the mechanical services market.

Entire’s service and maintenance offering now accounts for approximately 35% of revenue, complementing its construction operations. Data centers made up about 25% of Entire’s fiscal 2026 revenue.

SCEE Group Managing Director Graeme Dunn said there is a strong cultural fit between the organizations and noted mechanical (HVAC) is a logical adjacency given sector tailwinds including significant investment in data centers, energy efficiency and electrification.

Rod Sekulich, Entire’s managing director and a shareholder, said joining SCEE marks a proud moment and the start of a new chapter for the business. All existing employee executive shareholders will remain employed under long-term contracts extending beyond the earn-out period.

Moelis Australia is acting as corporate adviser to SCEE, EY is providing financial, payroll and tax due diligence, and K&L Gates is serving as legal adviser.