Mining sector services provider Decmil has acquired WA telecommunications provider SC Services for $14 million.
SC Services provides installation and commissioning services to telecommunications network owners and NBN wholesalers. According to Decmil, SC Services generated about $26 million in revenue last year, with EBITDA of $3.5 million.
Decmil chief executive Scott Criddle said the acquisition would give the company national scale in the telecommunications sector.
“This is an important step forward in our strategy to build a broader and robust business that, in addition to our historical strength in the natural resource sector, has reach and capability across Australia in a variety of public and private sector infrastructure,” he said.
SC Services will continue to operate under its own branding, with owner John Ryall becoming general manager for the business.
During its financial year 2015 annual meeting, Criddle said establishing a dedicated telecommunications business would be a key focus as the mining sector customer base declines.
The publicly-traded company entered the telco installation market last year when it acquired struggling infrastructure provider SAS Telecom for approximately $1 million. Decmil has also partnered with WA Microsoft partner Ignia to take its in-house developed construction apps to market.
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