- Konekt Limited has obtained the Disability Employment Services business of Artius
- The newly obtained services will be delivered across five locations with the contract lasting until 2023
- However, the purchase is subject to consent by the Commonwealth Department of Social Services and other standard conditions
- Konekt will continue to focus on its organic growth and other acquisition opportunities
Konekt Limited is one of the top gainers this morning, after it announced it had obtained the Disability Employment Services (DES) business of Artius.
Konekt is an ASX-listed company and the largest private sector provider of organisational health and risk management solutions.
Its aim is to help organisations minimise the impact of workplace injury and related workplace costs, resulting in reduced workers’ compensation premiums.
Artius is Queensland’s leading provider of health, employment, community and training services. Its mission is to help people, businesses and communities reach their potential.
Konekt CEO Damian Banks is pleased to work with Artius and expand Konekt’s reach.
“We are delighted to welcome the DES business of Artius to our organisation, expanding our position in regional Queensland, servicing local customers from five locations in Ipswich, Goodman, Warwick and Stanthorpe,” Damian said.
“This acquisition will increase Konekt’s DES regional footprint from 16 to 18 regions, and expand our services to include both Disability Management Services (DMS) and Employment Support Services (ESS) for the first time,” he said.
The newly obtained services will be delivered across five locations with the contract period lasting until 2023.
This purchase will be funded from cash reserves with a small revenue earn-out based on future performances, and it’s expected to contribute $1.1 million of revenue to Konekt in FY20.
However, the purchase is subject to consent by the Commonwealth Department of Social Services and other standard conditions, completion of all consent and requirements is expected during this current quarter.
Konekt will continue to focus on its organic growth and other acquisition opportunities that will strengthen its position and value for customers, staff and shareholders.