Highlights

  • HiTech Group Australia Limited (ASX:HIT) has completed the Acquisition of select Hudson Global Resources (Aust) assets.
  • The transaction has been combined with a $4 million Equity raising to support the company's expanded operations.
  • The move extends HiTech's geographic footprint well beyond its existing base.
  • Management has pointed to a broader mix of Revenue sources as a key rationale for the transaction.

HiTech Group Australia Limited (ASX:HIT) has completed the acquisition of select Assets of Hudson Global Resources (Aust) Pty Ltd out of voluntary administration, combined with a $4 million equity raising, according to an investor presentation dated 14 September 2026. The acquisition, described by the company as transformational, completed on 11 September 2026 and is intended to broaden HiTech's operations beyond its historical focus on federal government information and communications technology (ICT) contracting.

Transaction Details

The acquisition carries an upfront consideration of $5.1 million, with up to a further $3.9 million payable on a deferred basis. Funding for the transaction has been drawn from a $10 million term loan, a $4 million equity Placement and existing cash reserves held by the company. The equity raising component comprises 4 million new shares issued at $1.00 per share, representing a 9.9% discount to the closing share price and a 13.3% discount to the five-day volume-weighted average price, with settlement scheduled for 22 September 2026.

On a pro forma combined basis, HiTech's revenue following the acquisition is expected to be approximately $216 million, with Hudson's annualised revenue at completion standing at approximately $150 million. The transaction has been structured at a valuation multiple of under 1.0 times last-twelve-months Enterprise value to EBITDA.

The combination of a deferred consideration structure with an upfront cash payment is a mechanism sometimes used in acquisitions of this kind to align the final purchase price with the acquired business's subsequent performance. The mix of Debt funding, an equity placement and existing cash reserves used to complete the transaction reflects a layered approach to financing an acquisition of this scale.

Strategic Outlook

HiTech has described the acquisition as expanding its geographic footprint from its existing Sydney base to five Australian cities. The company has indicated that the combined Business will diversify its revenue mix beyond federal government ICT contracting into professional services, business support and permanent recruitment, serving both state government and private sector clients. This broader client and service base is positioned by management as a means of reducing the company's reliance on a single contracting channel.

Expanding operations to five Australian cities, from a single-city base, represents a considerable increase in HiTech's physical footprint and potential reach into new client segments. Diversification of this type, spanning recruitment, professional services and business support alongside the existing ICT contracting business, is typically intended to provide a broader base of revenue streams across different client types and government levels.

Sector Context

Acquisitions completed through a voluntary administration process typically allow an acquirer to purchase select assets of a distressed business, rather than the whole entity and its liabilities, which can affect the valuation multiple applied to the transaction. A sub-1.0 times EV/EBITDA multiple, as disclosed in this transaction, is a valuation metric used across the recruitment and professional services sector to compare the price paid for a business against its underlying earnings. Equity raisings conducted at a discount to the prevailing share price and recent trading average are a common mechanism used by listed companies to fund acquisitions while providing existing and new shareholders the opportunity to participate.

Recruitment and professional services businesses more broadly derive revenue from a mix of permanent placement fees and ongoing business support or contracting arrangements, meaning diversification across service lines and client sectors, of the kind described in this transaction, is a Factor often considered relevant to a company's revenue composition over time.

Key Takeaways

The completion of the Hudson Global Resources acquisition, together with the accompanying equity raising, represents a notable expansion of HiTech Group Australia's operations and geographic reach. By broadening its revenue base beyond federal government ICT contracting into professional services, business support and permanent recruitment, the transaction reflects a shift in the company's operating profile as it integrates the acquired business following settlement of the equity raising on 22 September 2026.