SRJ, an Australian provider of asset integrity management solutions, has agreed to acquire 100% of the issued capital of ACE. 

ACE, which is based in the UK, specialises in remote inspection services for the oil & gas industry.  

The transaction includes a cash payment of £4.5m (A$8.6m) and the issuance of 175,249,279 shares valued at approximately A$9.6m. 

SRJ highlighted that ACE is transforming inspection procedures in the oil and gas sector using advanced robotic technologies for land, sea and air, reducing human risk while significantly enhancing accuracy and safety. 

For the fiscal year 2023, ACE reported a 64% increase in revenue and anticipates growth of 174% in fiscal year 2024.  

The merger of SRJ and ACE is set to combine their respective strengths in inspection, and repair and maintenance services within the asset integrity sector. 

The strategic partnership aims to leverage existing relationships to cross-sell services and expand their market reach.  

This includes introducing complementary services to the current client base and exploring new geographical markets.  

To finance the cash portion of the acquisition, SRJ is raising A$14m, which will also provide working capital for the combined entity post-completion. 

Upon finalisation of the deal, ACE's sellers will hold approximately 28% of SRJ's shares.  

SRJ CEO Alex Wood stated that the acquisition marks another milestone in the company's journey toward becoming a leading global provider of asset integrity solutions for the energy sector. 

“The acquisition of this market-leading tech company will put SRJ on the front foot when it comes to assisting the energy sector with its transition to more sustainable operations,” Alex added. 

The expected completion date for the acquisition is on or around 21 August 2024, pending the satisfaction or waiver of the conditions precedent.