SKS Technologies Seals $15M Acquisition to Boost NSW Market Share
SKS Technologies has formalised its acquisition of Delta Elcom, a specialist electrical and communications firm, aiming to boost its market share in New South Wales' data centre sector and beyond.
- Formal sale agreement executed for Delta Elcom acquisition
- Consideration between $13.75 million and $15 million including cash, shares, and earnout
- Delta Elcom generates approximately $25 million in annual revenue
- Acquisition expected to settle on 12 January 2026
- Strategic move to expand SKS’s presence in NSW data centre and electrical markets
Strategic Expansion in NSW
SKS Technologies Group Limited (ASX – SKS) has taken a decisive step to broaden its footprint in New South Wales by executing a formal sale agreement to acquire Delta Elcom. This move, announced on 18 December 2025, follows an initial announcement a month earlier and is set to settle by mid-January 2026. The acquisition is positioned as a natural progression for SKS, aiming to accelerate growth in the competitive data centre space alongside its established electrical and communications sectors.
Complementary Capabilities and Market Synergies
Delta Elcom brings to the table approximately $25 million in annual revenue and a specialist skill set in electrical and communications services. SKS’s CEO, Matthew Jinks, highlighted the cultural and operational alignment between the two companies, suggesting the combined entity will be better placed to capture emerging opportunities across NSW’s diverse market sectors. The integration promises to enhance SKS’s service offering and operational scale, potentially driving faster growth and a stronger market presence.
Financial Considerations and Deal Structure
The acquisition price ranges from $13.75 million to $15 million, reflecting a combination of an $11.75 million completion payment, $2 million in fully paid SKS shares, and an earnout capped at $1.25 million based on Delta Elcom’s 2026 performance. This structure balances upfront cash outlay with performance incentives, aligning interests and mitigating risk. SKS’s strong balance sheet, with no long-term debt and robust cash flows, underpins its capacity to fund this strategic acquisition without compromising financial stability.
Positioning for Future Growth
With a 94% repeat business rate and expanding work on hand, SKS Technologies is well-positioned to capitalise on the growing demand for electrical technologies and digital infrastructure across Australia. The Delta Elcom acquisition is expected to enhance SKS’s competitive edge in NSW, particularly within the data centre sector, which continues to experience robust growth driven by digital transformation trends. Investors will be watching closely to see how the integration unfolds and translates into financial performance in the coming quarters.
Bottom Line?
SKS’s acquisition of Delta Elcom sets the stage for accelerated growth in NSW, but the true impact will hinge on seamless integration and 2026 performance.
Questions in the middle?
- How will Delta Elcom’s integration affect SKS’s operational efficiency and margins?
- What impact will the earnout structure have on SKS’s 2026 financial results?
- Can SKS leverage this acquisition to expand beyond NSW into other key Australian markets?
