Australia-based workforce management company People Infrastructure (ASX: PPE) announced that it has entered into a binding agreement to acquire eCareer Employment Services Pty Ltd and Illuminate Search and Consulting Pty Ltd.

The acquisition price is approximately AUD 5,150,000 net of cash acquired, payable in cash on the completion date.

People Infrastructure expects eCareer and Illuminate Search and Consulting Pty Ltd to generate AUD 1.3 million in EBITDA for the 12 months following completion. It is expected that the acquisition will be completed in the following weeks, subject to satisfaction of customary conditions.

The consideration will be funded by People Infrastructure’s existing cash reserves. The acquisition will be EPS (earnings per share) accretive.

eCareer Employment Services Pty Ltd and Illuminate Search and Consulting Pty Ltd was first established in 1999 and is a technology staffing firm focused on the New South Wales market, with Victorian operations. The business is primarily a provider of on-hire technology contracting personnel to New South Wales government and blue-chip corporates in the banking, finance and insurance sectors. The business has 16 internal staff and on-hires approximately 200 technology professionals to its customers.

People Infrastructure’s Chief Executive Officer, David Cuda said, “The acquisition of eCareer and Illuminate is highly complementary to our existing Victorian and Queensland focused technology staffing businesses. The business is well entrenched in the New South Wales market and will enable further growth in the technology on-hire contracting market to New South Wales government departments, large banking, finance and insurance organisations, all of whom are large users of on-hire staffing services.”

“Approximately 80% of the net fees generated by the business is from on-hire contracting services and the other 20% of net fees is from permanent placements,” Cuda said. “People Infrastructure is especially attracted to the business due to its strong position in the New South Wales technology on-hire contracting market, its long-term relationships with its customers and proven leadership team who all have significant tenures within the business and technology staffing industry.”

Jeff Knowles, general manager of eCareer and Illuminate Search and Consulting, and managing director Mario Trivor will continue in their current roles as leaders of the business.