SRJ Technologies announces acquisition of Air Control Entech and capital raising

SRJ Technologies Group Plc (ASX: $SRJ) has successfully executed a Share Purchase Agreement to acquire 100% of the issued capital of Air Control Entech Limited (ACE), a UK-based company providing remote inspection services to the Oil & Gas industry with advanced robotics and custom UAV technology. The acquisition is aimed at enhancing SRJ's asset integrity services and expanding its market presence. Additionally, SRJ has raised approximately $13.5 million under a conditional placement to fund the acquisition and provide working capital.

Executive commentary on the acquisition and capital raising

The acquisition of Air Control Entech Limited marks a significant milestone for SRJ Technologies as it strengthens our position in the asset integrity market. ACE's advanced robotic solutions and specialized drone technology complement SRJ's offerings, creating substantial opportunities for cross-selling and expanding market penetration. The successful capital raising demonstrates the confidence of our existing shareholders and new institutional investors in our growth strategy and the potential of the combined group.

Summary of SRJ's acquisition of ACE and outlook

SRJ Technologies' acquisition of Air Control Entech Limited is set to redefine its presence in the asset integrity market, leveraging ACE's advanced robotic solutions and specialized drone technology to enhance its service offerings. The acquisition, funded by a $13.5 million capital raising, is expected to create substantial opportunities for cross-selling and expanding market penetration. With ACE's projected 174% revenue growth for FY24 and strong gross margins, the combined group aims to deliver pro forma revenue of A$12.3 million and pro forma underlying EBITDA of A$3.2 million in FY24, providing a solid financial outlook for the company's expansion and corporate strategy.