OTOC buys survey firm for $12m
OTOC has announced the $12 million acquisition of Geo-Metric Surveying as it looks expand its operations nationally.
The company will pay for the acquisition via a combination of cash and shares.
Geo-Metric was established in 2001, has offices in Sydney, Brisbane, Gladstone, Perth and Melbourne and employs about 52 staff.
It specialises in surveying for civil infrastructure and resources projects.
OTOC said the company had a strong track record of profitability, with an average EBITDA margin of approximately 28 per cent over the past two years.
The existing principals would remain closely aligned to the future performance of the company with long-term employment contracts and a component of the purchase price in OTOC shares and performance payments.
OTOC said the acquisition would boost its surveying footprint to more than 280 employees in offices across WA, Victoria, New South Wales and Queensland.
The acquisition was expected to be earnings accretive in full-year 2015.
OTOC chief executive Simon Thomas said the acquisition of Geo-Metric was another step in the company's national surveying strategy following the recent purchase of Bosco Jonson.
"This acquisition will enable OTOC to offer a specialist infrastructure and engineering surveying product capability throughout the national network and gain direct exposure to the substantial infrastructure investment underway in New South Wales, Queensland and Victoria," he said.
OTOC shares were up two cents, or 10.26 per cent, to 21.5 cents at 8.45am.
