Mining sector services provider Decmil has announced the acquisition of the assets of under-administration telco infrastructure company SAS Telecom for about $1 million.
SAS Telecom was placed under administration on 29 August following "a contractual dispute", according to Decmil's statement to the ASX. Decmil's purchase of SAS's "remaining work in hand and other business assets" will be completed on 1 December.
SAS provides a range of telecommunications and IT services over fibre, including network infrastructure, security, CCTV and online content.
Decmil is an ASX-listed company that provides design, engineering, construction, fabrication, accommodation and maintenance services to the resources sector. It generated $617.7 million of revenue and $49.7 of net profit in the 2014 financial year.
"Strategically, the acquisition of SAS provides Decmil with direct access into the telecommunication infrastructure sector," said Decmil chief and managing director Scott Criddle.
Decmil said in its announcement to the ASX that the acquisition allows a foot in the door "into the telecommunication installation market and the provision of related managed services".
Criddle said that the demand for communications infrastructure – SAS Telecom's main focus – is growing in line with ever "greater levels of connectivity and higher volumes of data transfer".
"We continue to seek ways to diversify our business beyond construction for the resources industry, and this acquisition will allow us to grow the range of operational services provided by Decmil," he said.
For the financial year ending 30 June, SAS Telecom racked up $14 million of revenue, with $1 million in EBITDA.
Decmil is headquartered in the Perth suburb of Osborne Park, with branches in the mining town of Karratha in Western Australia, plus Brisbane, North Murrarie and Calliope in Queensland.
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