SKS Completes $12.5M Acquisition to Expand NSW Data Centre Footprint
SKS Technologies has completed the acquisition of Delta Elcom, a Sydney-based data centre infrastructure specialist, in a $12.5 million deal combining cash and shares. This move aims to strengthen SKS’s foothold in the NSW data centre market and expand its electrical and communications services.
- Acquisition of Delta Elcom completed with $10.5M cash and $2M in SKS shares
- Delta Elcom generates approximately $25 million in annual revenue
- Earn-out of up to $1.25 million linked to 2026 financial performance
- Strategic expansion into NSW data centre infrastructure market
- Purchase price subject to final adjustments in coming weeks
Strategic Acquisition to Boost Market Presence
SKS Technologies Group Limited (ASX – SKS) has officially completed its acquisition of Delta Elcom Pty Ltd, a Sydney-based specialist in data centre infrastructure and electrical solutions. The deal, announced on 12 January 2026, marks a significant step for SKS as it seeks to deepen its presence in the competitive NSW data centre sector.
Delta Elcom, with annual revenues around $25 million, brings a wealth of expertise in electrical and communications contracting, particularly in complex infrastructure projects. Their capabilities span design, installation, and maintenance services across commercial, industrial, and mission-critical environments, making them a valuable addition to SKS’s diversified portfolio.
Financial Terms and Considerations
The acquisition was structured with an upfront cash payment of $10.5 million, complemented by the issuance of 612,501 new SKS ordinary shares valued at $2 million. This share component was intended to be issued on the day of completion, aligning vendor interests with SKS’s future growth. Additionally, an earn-out of up to $1.25 million is contingent on Delta Elcom’s financial performance throughout calendar year 2026, introducing a performance-based element to the deal.
While the purchase price is subject to the usual post-completion adjustments, this transaction signals SKS’s commitment to expanding its footprint in the data centre infrastructure market, particularly within New South Wales.
Market Implications and Future Outlook
SKS Technologies CEO Matthew Jinks described the acquisition as a logical progression to accelerate market share growth in NSW’s data centre space, while also reinforcing SKS’s traditional sectors. The integration of Delta Elcom’s capabilities is expected to enhance SKS’s service offering, positioning the company to better compete for large-scale infrastructure projects.
As data centre demand continues to rise in Australia, driven by cloud computing and digital transformation, SKS’s strategic move could provide a competitive edge. However, investors will be watching closely how the integration unfolds and whether the earn-out targets are met, which will influence the ultimate value derived from this acquisition.
Bottom Line?
SKS’s acquisition of Delta Elcom sets the stage for accelerated growth in NSW’s data centre market, but the final impact hinges on integration success and 2026 performance.
Questions in the middle?
- How will SKS integrate Delta Elcom’s operations and culture effectively?
- What are the specific earn-out targets and how achievable are they?
- How will competitors in the NSW data centre infrastructure market respond?
