By Digifin Pty Ltd · About this coverage
Key Points
- Total consideration up to $112.1m: $70.0m upfront plus up to $42.1m in earn-outs
- Entire FY26 revenue $191m and EBIT $17.5m; data centres about 25% of revenue
- Funded from SCEE's existing cash reserves
- FY27 EBITDA guidance raised to at least $110m, including $10m from Entire
- Completion expected on or about 1 November 2026, subject to ACCC waiver or approval
About SCEE (ASX:SXE)
Southern Cross Electrical Engineering Limited is an ASX-listed electrical, instrumentation, communications and fire services contractor headquartered in Perth. It provides construction and maintenance services to resources, infrastructure, commercial and data centre clients across Australia.
Southern Cross Electrical Engineering (SCEE (ASX:SXE)) signed an agreement to buy Victorian fire protection and mechanical (HVAC) services group Entire Operations, taking SCEE into mechanical services and adding scale in Victoria, and lifted its FY27 EBITDA guidance as a result.
SCEE will acquire 100% of Entire for total consideration of up to $112.1m on a cash free, debt free basis. That comprises $70.0m cash on Completion, up to $25.8m in base earn-outs payable if Entire's EBIT is at least $17.0m in each of FY27, FY28 and FY29, and up to $16.3m in outperformance earn-outs tied to stretch EBIT targets rising to $27.5m in FY29. Entire generated revenue of $191m and EBIT of $17.5m in FY26, with data centres around 25% of revenue and service and maintenance about 35%. The price is funded from existing cash reserves. SCEE forecasts at least 18% EPS accretion on a FY27F pro forma basis and has increased FY27 EBITDA guidance to at least $110m, including a forecast $10m contribution from Entire assuming completion on 1 November 2026.
Completion remains conditional, including on ACCC waiver or approval, no material adverse change in Entire and release from Entire's existing financial arrangements. The earn-outs depend on future EBIT that has not yet been achieved.
Source: Southern Cross Electrical Engineering Limited (ASX:SXE), 12 October 2026. Summary content supplied by Digifin Pty Ltd.
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