Service Stream completes $404 million raise to fund Programmed acquisition
Service Stream (ASX: SSM) has successfully completed the Institutional Entitlement Offer and Placement, raising approximately $404 million. The proceeds will fund, in part, the acquisition of Programmed for a purchase price of $975 million, before adjusting for debt and debt-like items and any purchase price reduction.
The Institutional Entitlement Offer was “strongly supported by existing institutional shareholders and new investors”. Service Stream achieved a take-up rate of approximately 92.5% by existing institutional shareholders of their entitlements (excluding ineligible institutional shareholders).
The institutional component forms part of the company’s 1 for 4.9 pro rata accelerated non-renounceable entitlement offer, first announced on 9 November 2026.
Leigh Mackender, Managing Director
“The acquisition of Programmed represents a significant strategic milestone for Service Stream, bringing together two complementary businesses…”
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Inside the raise: shares, price and breakdown
The Institutional Entitlement Offer and Placement will result in the issue of approximately 199 million New Shares at an offer price of $2.03 per New Share. The price applied to both components of the equity raising.
| Component | New Shares (approx.) | Amount raised (approx.) |
|---|---|---|
| Institutional Entitlement Offer | 91 million | $186 million |
| Placement | 108 million | $219 million |
| Total | 199 million | $404 million |
New Shares will rank equally with all existing fully paid ordinary Service Stream shares on issue.
The Programmed deal terms
The acquisition terms are separate from the equity raising and carry two adjustment features:
- The purchase price is $975 million, subject to customary completion adjustments for working capital (measured against a target working capital amount) and agreed debt and debt-like items (estimated at $65 million).
- The purchase price may be reduced by an amount of up to $25 million through a post-completion adjustment should Programmed not achieve a prescribed EBITDA hurdle for the financial year ending 31 March 2027.
EBITDA is earnings before interest, tax, depreciation and amortisation, a common measure of operating profit. A hurdle-linked reduction ties part of the final price to how Programmed performs over that financial year.
The full Programmed acquisition announcement also outlines the expected earnings uplift, targeted cost savings and the leverage path after completion, which frame why the group sought equity funding alongside debt.
Mackender said that, post completion, the combined group will be well positioned to enhance capabilities, broaden the services provided to clients and pursue future growth. Further detail, including key risks, is in the Investor Presentation released on 9 November 2026.
Programmed follows a much smaller bolt-on earlier in 2026, the RIE Group acquisition, which added high-voltage electrical and instrumentation capability and signalled a broader appetite for M&A.
What happens next for Service Stream shareholders
The timetable is indicative only and subject to change, and quotation of securities is subject to confirmation from ASX. Key dates are:
- Trading halt and announcement of the Acquisition and Equity Raising, Placement and Institutional Entitlement Offer opens: Monday 9 November 2026.
- Placement and Institutional Entitlement Offer closes: Tuesday 10 November 2026.
- Announcement of results of Placement and Institutional Entitlement Offer: Tuesday 10 November 2026.
- Normal trading resumes on an ex-entitlement basis from market open Tuesday 10 November 2026.
- Record Date for Entitlement Offer: Wednesday 11 November 2026.
- Retail Information Booklet dispatched and Retail Entitlement Offer opens at 9am: Monday 16 November 2026.
- Settlement of Placement and Institutional Entitlement Offer: Wednesday 18 November 2026.
- Allotment and normal trading of those New Shares: Thursday 19 November 2026.
- Retail Entitlement Offer closes at 5pm (AEDT): Friday 27 November 2026.
- Announcement of results of Retail Entitlement Offer: Wednesday 2 December 2026.
- Settlement of New Shares under the Retail Entitlement Offer: Thursday 3 December 2026.
- Allotment of New Shares under the Retail Entitlement Offer: Friday 4 December 2026.
- Normal trading of New Shares issued under the Retail Entitlement Offer: Monday 7 December 2026.
- Dispatch of holding statements for those New Shares: Tuesday 8 December 2026.
Shareholders outside Australia or New Zealand, or who are in the United States or acting for the account or benefit of a person in the United States (among other criteria), are ineligible to participate in the Retail Entitlement Offer. Further details are in the Retail Information Booklet.
Questions about the Entitlement Offer can be directed to the Service Stream Offer Line on 1300 850 505 (from within Australia). UBS Securities Australia Limited is acting as Sole lead manager, bookrunner and underwriter to the Equity Raising.
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