HiTech seals $7M binding deal to acquire Hudson’s Australian operations
HiTech Group Australia (ASX: HIT) has entered into a binding agreement to acquire the Australian operations and selected business assets of Hudson Global Resources (Aust) Pty Limited (administrators appointed) from its Administrators for an upfront consideration of A$7 million.
The acquired operations contribute approximately $190 million in revenue on a pro forma FY26 basis, based on annualised May 2026 revenue billed for active contractors intended to novate to HiTech. Management has described the deal as a transformational milestone in the Company’s 33-year history.
Importantly, the deal is structured as an asset acquisition only out of Administration. This allows HiTech to acquire key operating assets and customer relationships while limiting exposure to historical liabilities.
The transaction delivers instant national scale and earnings diversification, at a fraction of Hudson’s standalone revenue potential. The Company noted the upfront consideration reflects the accelerated timeframe and circumstances of an acquisition out of Administration, and does not reflect Hudson’s full standalone revenue or earnings potential.
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Inside the transaction — structure, price and conditions
The deal has been structured through the acquisition of selected business assets, rather than a whole-company purchase. It follows HiTech’s earlier announcement of 23 June 2026, which detailed the submission of a proposal to Hudson’s administrators.
HiTech’s earlier proposal to Hudson’s administrators had initially been framed as a non-binding $15 million offer subject to due diligence, ACCC approval, and finalised financing, with a creditors’ meeting on 24 June 2026 representing the first formal milestone in the process.
The consideration comprises two distinct components. An upfront cash payment sits alongside a conditional deferred amount tied to future performance, protecting HiTech’s balance sheet while ringfencing legacy risk.
| Transaction Element | Detail |
|---|---|
| Upfront cash consideration | Approximately $7 million (including $1 million deposit payable on signing) |
| Conditional deferred consideration | Up to $3 million, payable within 12 months post-completion, subject to future cash generation of the business |
| Pro forma FY26 revenue acquired | Approximately $190 million |
| Funding | Existing capital, committed debt facilities and other relevant capital sources |
| Key conditions | Novation of customer contracts and ACCC approval |
The transferring assets include the following:
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Hudson and UpperGround brands
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Customer relationships across Government and private sectors
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Contractor workforce
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Operating platform and business capabilities
Why the deal matters — from ICT specialist to national platform
The transaction accelerates HiTech’s long-term growth strategy and materially broadens its market position, adding complementary service offerings, a more diversified customer base and greater operational scale.
A national footprint across five states and territories
The acquisition significantly expands HiTech’s geographic footprint to include a presence across NSW, ACT, QLD, SA and WA. This complements the Company’s existing leadership position in Canberra, South Australia and New South Wales, providing the scale to better support national customers.
Diversification beyond ICT recruitment
The deal broadens HiTech’s capability beyond ICT recruitment and contracting into professional recruitment, business support, project services and permanent recruitment. The Company stated this significantly increases its addressable market while reducing reliance on any single sector or revenue stream.
Deeper Government capability
The transaction combines HiTech’s established Federal Government leadership, including Defence, with Hudson’s extensive State and Federal Government relationships. HiTech is a member of the Defence Industry Security Program (DISP), enabling the delivery of security-cleared personnel across sensitive environments.
A platform for consolidation
According to CEO commentary, Hudson delivers customers, capability and government relationships that could take a decade to build. The Company expects the transaction to be earnings accretive following integration, positioning the Group to participate in consolidating Australia’s fragmented workforce solutions industry.
HiTech noted that, given the transaction remains subject to ongoing novation and integration activities, it is not providing earnings guidance at this time.
Protecting Hudson’s people and ensuring continuity
HiTech has developed a disciplined integration plan focused on preserving customer, contractor and employee continuity. Initially, the acquired Hudson business will operate as a standalone business completely supported by the HiTech Group, allowing it to focus on maintaining customer service and retaining key talent.
Over time, selected support functions, technology platforms and shared services will be progressively integrated where they deliver sustainable operational and shareholder value. Transferring employees and contractors will be supported through a structured onboarding program following completion.
The Company acknowledged that not all Hudson staff will transition, thanking those employees for their service throughout a challenging period.
Dean Davidson, current CEO of Hudson Global Resources Australia
“Today’s announcement gives our people, contractors and customers some much-needed certainty, and provides a clear path forward for Hudson. Hudson has a proud history in Australia, built on the strength of our people, our brands and the long-term relationships we have developed with customers over many years. Joining HiTech gives us the stability and capability to protect what makes Hudson strong, while creating new opportunities for the future. There is a natural alignment between Hudson and HiTech, particularly in the way we value our people, our customers and long-term partnerships. I am confident that, together, we can build an even stronger business and continue to deliver great outcomes for the organisations and people we support.”
Management’s view on a transformational milestone
Elias Hazouri, Managing Director and CEO of HiTech Group Australia
“This acquisition represents a transformational milestone in HiTech’s 33-year evolution. Beyond adding scale, Hudson gives us access to private sector customers, capability and government relationships we do not reach today that could take a decade to build, and creates a genuinely unique position in the Australian market. Hudson has built a respected business with longstanding customer relationships and talented people. Our immediate priority is ensuring continuity for customers, contractors and key employees while implementing a disciplined transition program that positions the business for long-term success. Together, HiTech and Hudson – (HH), create a formidable platform capable of delivering broader workforce and professional solutions to Government and Private sector clients across Australia.”
What happens next
The transaction is expected to complete following the satisfaction of customary conditions precedent. Customary conditions remain before the deal can settle, including the novation of customer contracts and ACCC approval, and the deferred consideration window extends across the first year of ownership.
The completion pathway involves the following steps:
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Novation of customer contracts to HiTech.
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Receipt of ACCC approval.
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Completion of the transaction following satisfaction of the above conditions.
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Payment of conditional deferred consideration of up to $3 million within 12 months post-completion, subject to future cash generation.
HiTech stated it will maintain a disciplined balance sheet with capacity to pursue future strategic opportunities. The Company confirmed it will continue to update the market in accordance with its continuous disclosure obligations, with no earnings guidance provided at this stage.
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