Australia’s data-centre construction sector continues to surge on the back of cloud adoption, AI-driven computing needs and hyperscale investment. NSW remains the country’s dominant hub, making it a key battleground for contractors seeking scale, capability and recurring mission-critical work.
Against this backdrop, SKS Technologies Group (ASX:SKS) has moved to deepen its position in the state, announcing plans to acquire Delta Elcom, a Sydney-based electrical and communications specialist with around A$25 million in annual revenue.
CEO Targets NSW Growth
SKS Technologies CEO Matthew Jinks said the company has been analysing its strategic options in the state for over a year.
“We’ve been investigating our options in the NSW market over the past year in order to accelerate our efforts from which to capture market share more quickly in the largest data centre market by a long way in Australia,” he said.
He added that the group identified Delta Elcom as the right fit:
“We believe that we’ve found a business in Delta Elcom that is an advantageous strategic and cultural fit with SKS Technologies.”
Align Skillsets and Strengthen Project Delivery
Delta Elcom specialises in end-to-end electrical and communications work across complex infrastructure projects – ranging from data-centre builds to network cabling and integrated technology systems. The company delivers design, installation and maintenance services nationwide across commercial, industrial and mission-critical environments.
Jinks said the similarities between the two businesses formed part of the rationale for the deal.
“From the types of projects undertaken, the skills, capabilities, systems and services, the customer overlay, and the team commitment to project excellence, the similarities and shared values make the two businesses natural partners in building a larger share of the data centre market, as well as in the traditional market sectors in NSW and across Australia.”
Structure the Consideration
SKS intends to acquire 100% of Delta Elcom’s business and assets for between A$13.75 million and A$15 million, depending on earn-out performance.
The transaction structure includes:
- A$11.75 million cash completion payment
- A$2 million in new SKS Technologies shares, issued at the VWAP over the five business days prior to the announcement
- An earn-out of up to A$1.25 million, based on 2026 results
The completion payment (including the shares component of the transaction) is based on a five-times multiple of Delta Elcom’s three-year weighted average normalised earnings of approximately A$2.75 million.
SKS noted it will fund the cash portion through reserves, with the group’s cash balance sitting at A$42.5 million at end-October 2025.
The share component will be escrowed – half for 12 months, half for 24 months – aligning management incentives post-completion.
Plan Integration and Leadership Transition
Due diligence is largely complete and SKS is targeting 12 January 2026 for completion of the Delta Elcom acquisition, at which time the integration process will begin.
Delta Elcom Managing Director Mark Brame is expected to step into the role of NSW General Manager for SKS, maintaining his team and leading existing and new projects. SKS said NSW employees from both groups will blend into a single, cohesive operating unit.
The company emphasised that the acquisition remains subject to legal formalities, and a further update will follow once the agreement becomes binding and unconditional.
Capitalise on Long-Term Digital Infrastructure Demand
Jinks said the structural growth outlook for NSW remains compelling.
“The NSW data centre market offers significant long-term growth driven by digital infrastructure expansion and unabating hyperscale investment,” he said.
He added that the transaction positions the company for accelerated growth:
“Acquiring Delta Elcom positions SKS Technologies to capitalise on this momentum by combining its specialist delivery capability and client relationships with SKS’s national scale and technical strength to accelerate market reach and penetration, and earnings growth in future years.”
As Australia expands its digital backbone, SKS appears to be positioning itself for a larger share of the increasingly critical data-centre construction and services market – starting with NSW, the country’s biggest opportunity.
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