Insitec and Electrotech Australia, two trusted leaders in the Australian defence sector, have merged to form Sovereign Capability Group (SCG).
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,” said Bancroft. “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,” said Bancroft. “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,” said Ritchie. “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.”
Established in 2001, Insitec is an Australian prime systems integrator with a track record of building high performance digital systems for government, industry and Defence. Insitec has a portfolio of capabilities including enterprise level IT, cybersecurity, digitisation at the tactical edge and the sourcing of specialist technology talent. Insitec is currently partnering with trusted multinationals and defence primes to develop sovereign intellectual property with broader commercial use cases in critical infrastructure and digital transaction.
Founded in 1990, Electrotech Australia is a supplier of essential maritime communication and navigation equipment, offering comprehensive services for the supply, installation and sustainment of speciality equipment. Electrotech Australia’s revenue has a bias towards the defence sector, largely through the Defence primes with the balance of revenue coming from long-haul shipping, oil and gas sector, fishing boats and cruise ships. Electrotech Australia is uniquely placed to capitalise on the recommendations and additional funding coming out of the recent Surface Fleet Review to build and enhance the Royal Australian Navy fleet.
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,” said Goenka. “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. In the medium-term we will provide Australia with a substantial in-country capability that we believe is of real importance to the defence industry. SCG is on a path of significant growth, aiming to triple in size within five years. With our enhanced scale and strong balance sheet, SCG is well positioned to grow both organically and through strategic acquisitions, ensuring long-term sustainability and profitability.”
The merger will see SCG achieve close to $100 million in revenue this year.
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