Acquisition complete — HiTech secures national workforce solutions platform
HiTech Group Australia (ASX: HIT) has completed the acquisition of selected assets of Hudson Global Resources (Aust) Pty Ltd (Administrators Appointed), establishing immediate operations across NSW, ACT, QLD, SA, and WA. The deal was executed at a highly attractive entry price of less than 1.0x pro forma LTM EBITDA, representing a compelling acquisition multiple by professional services M&A standards.
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Deal structure and consideration terms
The parties agreed to a revised consideration structure since the prior announcement, with the upfront component reduced and the deferred portion increased. Key financial terms are outlined below.
| Component | Amount | Notes |
|---|---|---|
| Upfront consideration (gross) | $4,801,149 | Reduced by ~$950,000 vs. prior terms |
| Less: employee entitlements | Adjustment applied at completion | Deducted from gross upfront figure |
| Net upfront payable on completion | ~$3,850,000 | Funded from cash reserves plus committed debt facility |
| Deposit (already paid) | $1,250,000 | Pre-completion |
| Maximum deferred consideration | $3,948,850 | Payable within 9 months of completion, subject to margin generation hurdles |
The upfront consideration was funded from HiTech’s existing cash reserves together with a committed debt facility. A further debtor finance facility is also being made available to support ongoing payroll obligations.
The binding agreement sealed in July set the foundational deal terms, with HiTech committing $7 million upfront against approximately $190 million in pro forma FY26 revenue from active contractors expected to transfer across.
The acquisition was structured as an asset acquisition out of administration, allowing HiTech to acquire Hudson’s operating assets, customer contracts, and contractor book while limiting exposure to historical liabilities. A portion of the purchase price is directly tied to the future cash flows of the acquired business assets, aligning the deferred consideration with the ongoing performance of the acquired operations.
What this acquisition means for investors — understanding workforce solutions M&A
Three structural features of this transaction are worth understanding in context.
- Asset acquisition out of administration. When a company enters administration, an acquirer can purchase specific operating assets — such as customer contracts, staff, and a contractor book — rather than the entire corporate entity. This approach allows the buyer to select the productive assets it wants while avoiding exposure to the target’s historical debts, legal claims, or other legacy liabilities. For HiTech shareholders, this limits downside risk associated with Hudson’s prior obligations.
ACCC unconditional clearance, granted in August 2026 after a Phase 1 review, determined the combined group was not likely to substantially lessen competition in any relevant market, removing what had been the principal regulatory condition standing between HiTech and deal close.
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Sub-1.0x EBITDA entry pricing. In professional services M&A, businesses typically change hands at multiples well above 1.0x EBITDA. Acquiring a business at less than 1.0x means HiTech is paying less than one year’s operating earnings for the asset. This pricing, described in the announcement as “highly attractive,” reflects the administration context and suggests meaningful potential for earnings accretion if the acquired operations perform in line with their historical run rate.
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Deferred consideration tied to margin hurdles. Rather than paying the full purchase price upfront, HiTech has structured $3,948,850 of the consideration as deferred, payable only if the acquired business assets achieve future margin generation hurdles. This aligns a portion of the purchase price with actual business performance, reducing HiTech’s upfront capital outlay and sharing outcome risk between the parties.
Strategic rationale — from Canberra specialist to national platform
The acquisition represents a material transformation in HiTech’s operating profile, shifting the company from a Federal Government ICT recruitment specialist with an existing leadership position in Canberra to a diversified national workforce solutions and professional services platform. The expanded footprint now spans Queensland, New South Wales, South Australia, and Western Australia, complementing HiTech’s existing leadership position in the ACT.
Beyond geography, the transaction broadens HiTech’s service capabilities into adjacent segments, including:
- Professional recruitment
- Business support
- Project services
- Permanent recruitment (beyond ICT)
The combination of HiTech’s established Federal Government capability with Hudson’s extensive “State and Federal Government and Private Enterprise relationships” creates a more diversified government and professional services platform across multiple jurisdictions. The announcement notes that this national infrastructure, market presence, and customer relationships would otherwise require considerable time and investment to build organically.
Managing Director and CEO, Elias Hazouri
“This acquisition is a significant step forward for our highly successful HiTech Group, but its value rests with the people and their expertise who join us today. Hudson’s teams have built trusted relationships with customers, candidates and contractors over four decades, and they have continued to deliver to a high standard through a demanding period. That capability, vigour and resilience is what we have acquired, and it is what will lead the success of this transaction. When you combine this rare capability with the experts at HiTech, you form what is an incomparable standard in the industry. We are pleased to welcome our new members to the HiTech family, and our commitment to them is certainty, support and the backing of a business with the stability to invest in their future.”
Integration roadmap and what comes next
As of completion, the vast majority of assets have been formally novated. Some government panels, customer engagements, and contractor arrangements remain subject to standard novation formalities, with continuity arrangements in place for HiTech to continue servicing those engagements throughout the near-term transition period.
The liquidation of Hudson is planned to commence 15 September, which informed the accelerated timetable to completion. Integration will be phased, with shared services and systems brought together progressively where this delivers sustainable operational benefit. HiTech expects these efficiencies to support the earnings accretion anticipated from the acquisition.
The company expects to provide further details on the financial impact of the acquisition, including pro forma financial information, in due course. With the national platform now in place, the expanded HiTech Group is positioned to pursue further organic growth and disciplined acquisition opportunities from a materially broader operational base.
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