Konekt Limited (ASX code KKT), has exchanged contracts to acquire the Disability Employment Services (DES) business of Artius Pty Ltd (Artius), headquartered in Ipswich, Queensland.
Konekt Chief Executive Officer, Damian Banks, said “we are delighted to welcome the DES business of Artius to our organisation, expanding our position in regional Queensland servicing local customers from five locations in Ipswich (2), Goodna, Warwick and Stanthorpe. The acquisition will increase Konekt’s Disability Employment Services (DES) Regional footprint from 16 to 18 regions, and expand our services to include both Disability Management Services (DMS) and Employment Support Services (ESS) for the first time.”
The acquired services will be delivered across 5 locations with contract tenure to 30 June 2023. Established in 2004, Artius has a strong presence in regional Queensland.
The proposed acquisition will be funded from cash reserves with a small earn-out based on future performance. It is expected that the acquisition will contribute revenues of $1.1 million to Konekt in FY20 (c.10 months) and be EPSA accretive in the first year.
The acquisition is subject to consent by the Commonwealth Department of Social Services and other standard conditions precedent. Completion is expected during the current quarter.
Konekt continues to focus on organic growth and acquisition opportunities that will strengthen its position and value for customers, staff and shareholders.