Stream - Acquisition of Mayfield Group Invetsments

Stream

Link to announcement: https://www.asx.com.au/asxpdf/20200622/pdf/44jtz3hq452pq6.pdf

In June 2020, the Board of Stream Group Limited (“Stream”, ASX:SGO) announced  it will acquire 100% of Mayfield Group Investments Pty Ltd and its subsidiaries (“Mayfield”).

A general meeting to obtain shareholder approval is expected to be held in mid-August 2020, and the Completion of the Transaction is expected in early September 2020.

On completion, Lindsay Phillips will join the board as a Non-Executive Director.

Mayfield is a specialist engineering group of companies supplying electrical products and services for critical infrastructure and facilities throughout Australia. Founded in 1936, Mayfield’s client base consists primarily of mining, infrastructure, process manufacturing and renewable energy companies. The Mayfield Group of Companies also include:

  • STE Solutions: construct, repair and maintain medium and high voltage facilities and infrastructure particularly to the renewables and utilities sectors (stesolutions.com.au);
  • Power Parameters: provide, install and maintain critical electrical power and measurement instrumentation (parameters.com.au);
  • Walker Control: manufactures protection and control systems for electrical power infrastructure (walkercontrol.com.au); and a minority stake in
  • ATI Australia: a specialist microwave communication systems and battery management provider (ati.com.au)

Stream’s business was the licensing of a claims management software to insurance companies. In 2017, Stream sold this insurance claims’ management business. The consideration included earn out payments payable over subsequent years. In March 2020, Stream received the final payment of $1.5 million