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Maritime communication and navigation equipment provider Electrotech Australia has merged with prime systems integrator Insitec to form the Sovereign Capability Group.
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The merger is expected to see the Sovereign Capability Group (SCG) achieve close to $100 million in revenue this year.
Whiteoak, an Australian private equity firm, has facilitated the merger, led by Greg Garvin and Udhav Goenka.
“We invest in high-quality, growth-phase Australian companies and see tremendous potential in the Australian defence sector,” Goenka said.
“By merging Insitec and Electrotech to form SCG, we are creating a business of real scale that can meaningfully serve the ADF. This move positions SCG as a strong, viable entity capable of supporting Australia’s defence needs and expanding into international markets.”
Insitec’s chief growth officer, Jim Bancroft, said the strategic move unites extensive capabilities and expertise, positioning SCG as a new Australian prime systems integrator.
“This merger creates a combined entity with the scale to provide significant sovereign capability to the Australian Defence Force,” Bancroft said.
“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.
“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.”
He said SCG would benefit from a broadened contract base and expertise in digital transformation across government and commercial sectors.
“It’s an exciting time for the entire team. We have the products, ideas, support and people to make major gains,” Bancroft said.
“This will improve the resilience of the company and the diversity of its skills and service offering.”
Electrotech Australia managing director Joe Ritchie said the merger would also bring operational benefits.
“By pooling our resources, we can now deliver comprehensive end-to-end solutions, ensuring the highest standards of service and support,” Ritchie said.
“We feel extremely proud about continuing to build in-country capability within the maritime and defence industries.
“This merger will also help us capitalise on strong industry tailwinds as we aim to support the ADF’s expanding maritime capabilities.
“Additionally, the 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.”
