Service Stream Limited (ASX: SSM), a public company listed on the Australian Securities Exchange, is a provider of essential network services to the telecommunications, utility, and transport sectors. The Service Stream Group operates across all States and Territories, employing approximately 5,000 staff and utilising a pool of about 10,000 specialist contractors. The company has announced that it has entered into an agreement to acquire Queensland-based RIE Group, subject to the satisfaction of usual conditions precedent. This strategic move is set to broaden Service Stream’s capabilities within the industrial services sector.
RIE Group is a specialised high-voltage electrical and instrumentation business. It operates across the oil and gas, power generation, and renewable sectors, primarily within the Surat Basin, Darling Downs, and Gladstone regions. The business generates approximately $13 million in revenue and employs between 60 to 120 individuals during peak outage periods. The acquisition aligns with Service Stream’s strategy to grow and diversify its total addressable market, enhancing its capabilities, expanding geographical presence, and establishing stronger relationships with blue-chip asset owners.
Under the terms of the agreement, Service Stream will make an initial payment of $6.5 million, which is subject to a purchase price adjustment based on the final net working capital position at completion. An additional cash consideration of up to $1.5 million may be paid on a pro-rata basis if RIE Group exceeds a minimum financial performance threshold for the 2027 financial year. Service Stream anticipates that the transaction will be completed in or around August 2026.
Leigh Mackender, Service Stream Managing Director, commented on the acquisition, stating, “We are pleased to announce the acquisition of RIE and welcome their staff into the Service Stream business. The acquisition reflects a strategic addition to our growing utility operations at a time when the energy transition is providing increasing opportunities. The expansion of capabilities across the industrial services sector reflects one of many growth areas being targeted as we look to continually expand the Group’s total addressable markets.”
