Konekt Limited (ASX: KKT), Australia’s largest private sector rehabilitation provider, is expanding its South Australian presence through the proposed acquisition of two businesses.
The group has entered into agreements to acquire two businesses – Applied Innovative Services (AIS) and Innovative Training and Recruitment (ITR), and Insite Injury Management Group (Insite). Based in South Australia, both businesses have additional operations in the ACT and Northern Territory (AIS), and NSW (Insite).
These businesses form part of Konekt’s strategy to strengthen its position in the South Australian market, whilst adding to capability in NSW and the ACT.
“We see the addition of these businesses as part of our strategy to broaden our workplace health solutions and grow our presence in the South Australian market – a market undertaking significant realignment,” says Konekt Chief Executive, Damian Banks.
“The past 12 months have been challenging for rehabilitation providers, as a result of significant marketplace changes. These businesses will provide Konekt with critical mass and will see Konekt, together with AIS, ITR and Insite, positioned as the largest and highest quality provider in the South Australian market – by any measure.
“We see these businesses as a perfect fit. Both AIS and Insite have a strong history of performance with ReturnToWorkSA and are significant providers to the state-based scheme, while Konekt is strong in the self-insured and government markets in South Australia. These complimentary customer portfolios and consultant skill sets means that together we will be a considerable force in the South Australian market.”
AIS and ITR operate from five locations in SA and one in the ACT and are the market leader in South Australia. They have long standing relationships with a number of local customers and are a significant provider to ReturnToWorkSA. ITR has an enviable position within the South Australian market – including being one of the few companies approved to provide Return to Work Coordinator certificate training.
“We are proud of the record of achievement of AIS and ITR since its inception 16 years ago. Growing from one employee to the current market-leading position has been a fantastic team achievement. This sale represents the next logical step in our growth. I will be joining the Konekt team – and am looking forward to our joint future together,” says AIS and ITR Chief Executive, Danielle Mik.
Insite Chief Executive, Leah Brown said: “Insite has a long legacy of innovation and expansion since its commencement. Growing, changing and expanding into NSW has provided opportunities for both staff and customers. This sale offers an opportunity for us to grow, yet recognises our strong history.”