Insitec, Electrotech merge to form SCG

IT company Insitec and communications and maritime navigation equipment supplier Electrotech Australia have announced their merger, forming a new defence industry entity named Sovereign Capability Group (SCG).

According to Jim Bancroft, Chief Growth Officer at Insitec, the move positions SCG as a new local prime systems integrator.

“I believe our trusted relationships and strong reputation with key clients, including the Australian Department of Defence and global primes, will be further solidified through this merger,” said Bancroft in a statement on Monday.

“The combined entity will harness the strengths of both companies, enhancing its ability to serve existing customers and capture new opportunities in the commercial markets and critical infrastructure sectors.”

The new entity will achieve an estimated revenue of almost $100 million this year, they said.

Electrotech’s Managing Director Joe Ritchie added that operational benefits would be realised as well.

“…[T]he synergies from combining our resources will allow us to meet the increasing regulations of doing business with large companies and keep our existing systems up to date, including defence security, quality assurance and work health and safety,” said Ritchie.

The merger was facilitated by Whiteoak, an Australian private equity firm, led by Greg Garvin and Udhav Goenka.

Picture: Ritchie and Bancroft (supplied)