Mining services company Resource Development Group (ASX:RDG) will acquire electrical engineering and industrial IT services company Intellect Systems in a cash and stock deal worth up to $5 million.
Intellect Systems provides electrical and control systems project services primarily to the mining and resources sector.
The company operates predominately in Australia, and has clients including BHP Billiton (ASX:BHP).
Resource Development Group will pay between $4 million and $5 million for the purchase, a quarter of which will be in cash and the rest in shares.
The company expects the acquisition to contribute up to $4 million in revenue and $1 million to ebit - and be earnings accretive - in year one.
Managing director Jeff Brill said the purchase is “part of a planned series of acquisitions that are in line with our strategy to build a vertically integrated mining services business.”
RDG shares stayed flat on Thursday at $0.250.
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